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FG, States , LGCs Share  N1.659 Trillion From  A Gross Total  Of N2.942 Trillion  For The Month  Of May 2025

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The Federation Account Allocation Committee (FAAC), at its June 2025 meeting chaired by the Honourable Minister of Finance and Coordinating Minister of the Economy, Wale Edun, shared a total sum of N1.659 Trillion to the three tiers of government as Federation Allocation for the month of May 2025 from a gross total of N2.942 Trillion.

From the stated amount inclusive of Gross Statutory Revenue, Value Added Tax (VAT), Electronic Money Transfer Levy (EMTL) and Exchange Difference, the Federal Government received N538.004 Billion, the States received N577.841Billion, the Local Government Councils got N419.968 Billion, while the Oil Producing States received N124.076 Billion as Derivation, (13% of Mineral Revenue).

The sum of N111.908 Billion was given for the cost of collection, while N1.171 Trillion was allocated for Transfers Intervention and Refunds.

The Communique issued by the Federation Account Allocation Committee (FAAC) at the end of the meeting indicated that the Gross Revenue available from the Value Added Tax (VAT) for the month of May 2025, was N742.820 Billion as against N642.265 Billion distributed in the preceeding month, resulting in an increase of N100.555 Billion.

From that amount, the sum of N29.713 Billion was allocated for the cost of collection and the sum of N21.393 Billion given for Transfers, Intervention and Refunds. The remaining sum of N691.714 Billion was distributed  to the three tiers of government, of which the Federal Government got N103.757 Billion, the States received N345.857 Billion and Local Government Councils got N242.100 Billion.

Accordingly, the Gross Statutory Revenue of N2.094 Trillion received for the month was higher than the sum of N2.084 Trillion received in the previous month by N10.023 Billion. From the stated amount, the sum of N81.042 Billion was allocated for the cost of collection and a total sum of N1.149 Trillion for Transfers, Intervention and Refunds.

The remaining  balance of  N863.895 Billion was distributed as follows to the three tiers of government: Federal Government got the sum of N393.518 Billion, States received N199.598 Billion, the sum of N153.881 Billion was allocated to LGCs and N116.898 Billion was given to Derivation Revenue (13% Mineral producing States).

Also, the sum of N28.820 Billion from  Electronic Money Transfer Levy (EMTL) was distributed to the three (3) tiers of government as follows: the Federal Government received N4.150 Billion, States got N13.833 Billion, Local Government Councils received N9.683 Billion, while N1.153 Billion was allocated for Cost of Collection.

The Communique also mentioned the sum of N76.614 Billion from Exchange Difference which was distributed to the three tiers of Government as follows: Federal government got N36.579 Billion, the State received N18.553 Billion, the LGCs got N14.304 Billion, while the Oil producing States received N7.178 Billion.

Companies Income Tax (CIT), Value Added Tax (VAT) and Import Duty increased significantly, while Petroleum Profit Tax (PPT), CET levies,  Oil and Gas Royalty and Electronic Money Transfer Levy (EMTL) recorded decreases. Excise Duty increased only marginally.

According to the Communique, the total revenue distributable for the current month of May 2025, was drawn from Statutory Revenue of N863.895 Billion, Value Added Tax (VAT) of N691.714 Billion, N27.667 Billion from Electronic Money Transfer Levy (EMTL) and the sum of N76.614 Billion from Exchange Difference, bringing the total distributable amount for the month to N1.659 Trillion.

Earlier in his opening remarks, the Honourable Minister of Finance and Coordinating Minister of the Economy Mr. Wale Edun emphasized the importance of transparency, accountability, and prudent fiscal management in revenue allocation processes.

He commended the FAAC members’ commitment in the realization of this policy objectives of government, 

stating that the collective efforts aim to drive economic growth, stability, and development across all regions, ensuring resources are utilized effectively for the benefit of all Nigerians.

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Edun Champions Nigeria’s Fiscal Reset  At The UN Finance Summit 

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In a bid to drive economic growth and development, the Honourable Minister of Finance and Coordinating Minister of the Economy Mr Wale Edun has today emphasized the need for fiscal reform and international cooperation when he delivered the country’s statement at the 4th International Conference on Financing for Development (FFD4), holding in Sevilla, Spain. 

Speaking at a high-level roundtable on domestic public resource mobilisation, HM Edun called for a rebalancing of global finance to better reflect the realities of developing economies. He highlighted Nigeria’s reforms to improve tax administration, drive fiscal discipline, and create an enabling environment for private sector investment.

*In today’s evolving global landscape, self-reliance is essential. We are prioritising digital infrastructure, transparency, and institutional reform to deliver more for Nigerians with every naira spent,* the Minister noted. 

He also stressed the urgent need for stronger international collaboration on tax fairness and illicit financial flows, areas where African economies continue to face systemic disadvantage.

The event brought together senior officials from the United Nations, OECD, EU, and development banks, alongside finance ministers from countries including Nepal, Malawi, and Uruguay.

As the Nigerian government continues to drive economic reforms, HM Edun’s message at the UN Finance Summit underscores the country’s commitment to achieving sustainable economic growth and development for the benefit of all Nigerians

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Nigeria Emerges As Pan -African  Trade  Powerhouse  As Edun  Charts Path  To Economic Dominace  At Afreximbank  Meetings 

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The 32nd Annual Meetings of the African Export-Import Bank (Afreximbank) provided a platform for Nigeria to showcase its economic prowess, with the Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, highlighting the country’s emergence as a regional hub for trade, development finance, and industrial growth.

Speaking during a high-level session of delegates from across Africa and the diaspora at the Annual Meetings in Abuja on Friday, the Minister underscored Nigeria’s partnership with Afreximbank as a model for effective collaboration between governments and development finance institutions. *We are not just participating in a summit. We are advancing a shared vision for Africa’s prosperity, with Nigeria playing a leading role in its delivery,* Edun said.

He highlighted further that Nigeria has secured over $52 billion in Afreximbank financing, with targeted interventions across energy, infrastructure, healthcare, and SME development, including the Africa Trade Centre in Abuja, the African Medical Centre of Excellence, and the proposed Africa Energy Bank, with $5 billion in capital, to be headquartered in Abuja.

The Minister also pointed to Nigeria’s recent formal adoption of the Pan-African Payment and Settlement System (PAPSS), calling it a game-changer for intra-African trade and financial independence. *With PAPSS, Nigerian businesses can settle cross-border transactions in local currencies, reducing foreign exchange pressures and creating a more stable trade environment,* he stated.

HM Edun applauded the innovative leadership of Afreximbank President Prof. Benedict Oramah and urged the Nigerian private sector to leverage the full suite of Afreximbank instruments, including FEDA, AQAC, and CANEX, to expand market access and scale impact. *The enabling institutions are in place. The infrastructure is growing. Now is the moment for Nigeria’s entrepreneurs and investors to go bigger, bolder, and regional,* he added.

The 32nd Afreximbank Annual Meetings convened top public and private sector leaders to advance dialogue on trade integration, financing solutions, and industrial growth across Africa.

As the African economy continues to evolve, Nigeria’s emergence as a pan-African trade powerhouse positions the country for sustained growth, investment, and prosperity. With strategic partnerships and innovative solutions, Nigeria is poised to play a leading role in shaping the continent’s economic future.

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Nigeria, Rwanda Sign Double Taxation Treaty To Unlock Cross-Border  Investment

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On the sidelines of the 32nd Afreximbank Annual Meetings, holding in Abuja, Nigeria, the Federal Republic of Nigeria and the Republic of Rwanda today signed a landmark Agreement on the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income, reinforcing their shared commitment to deepening economic cooperation and facilitating private sector-led growth across Africa. 

The high-level signing ceremony, held in Abuja, was presided over by the Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, alongside his Rwandan counterpart, Yusuf Murangwa, Minister of Finance and Economic Planning.

HM Edun hailed the agreement as a strategic milestone following the recent passage of four landmark tax reform bills in Nigeria. *This agreement is a critical tool for promoting cross-border investment, ensuring tax certainty, and eliminating the risk of being taxed twice on the same income,* he stated. Edun added that the agreement *supports our broader objective of unlocking private sector capital, accelerating intra-African trade, and positioning Nigeria as a competitive destination for investment under the African Continental Free Trade Area (AfCFTA).*

The treaty simplifies tax administration, improves transparency, and aligns Nigeria with global standards, ensuring that both governments can protect taxpayers, reduce loopholes, and combat fiscal abuse. It is expected to bolster confidence among investors operating in both countries, particularly in sectors such as technology, finance, agriculture, and logistics.

Rwanda’s Finance Minister, Yusuf Murangwa, echoed the sentiment of partnership and long-term ambition: *This agreement is a testament to the strong partnership between Rwanda and Nigeria, and a critical step in creating a unified, investor-friendly Africa. We believe this will serve as a model for deeper regional integration and shared prosperity.*

Both ministers acknowledged the dedication of their technical teams, whose professionalism and foresight shaped the framework for this outcome. The agreement not only cements bilateral tax cooperation but also opens the door for enhanced trade, technology collaboration, and capital flows, laying the foundation for a more resilient, integrated African economy.

As Africa continues to evolve, partnerships like this pave the way for a brighter economic future, fostering growth, investment, and prosperity across the continent.

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