FAAC Disburses ₦1.678 Trillion to Federal, State, Local Governments February 2025
The Federal, State, and Local Governments of Nigeria have shared a total of ₦1.678 trillion in revenue for February 2025, as announced by the Federal Account Allocation Committee (FAAC). This distribution, disclosed in a statement by Bawa Mokwa, Director of Press and Public Relations, followed the FAAC meeting held in Abuja and chaired by Wale Edun, Minister of Finance and Coordinating Minister of the Economy.
The revenue allocation was sourced from various streams, including ₦827.633 billion in statutory revenue, ₦609.430 billion from Value Added Tax (VAT), ₦35.171 billion from the Electronic Money Transfer Levy (EMTL), ₦28.218 billion from solid minerals, and an additional ₦178 billion augmentation.
According to the FAAC communiqué, Nigeria’s total revenue for February 2025 stood at ₦2.344 trillion. However, deductions of ₦89.092 billion were made for collection costs, while ₦577.097 billion was set aside for transfers, interventions, refunds, and savings. This left ₦1.678 trillion for direct allocation to the three tiers of government.
Despite a decline in gross statutory revenue—down by ₦194.664 billion from January’s ₦1.848 trillion—the FAAC distribution ensures that essential government operations and developmental projects remain funded. The allocations enable federal, state, and local administrations to meet their obligations in critical sectors such as infrastructure, education, healthcare, and security.
The revenue sharing underscores the continued collaboration among Nigeria’s government tiers to stabilize the economy and manage public resources effectively. As fiscal challenges persist, experts emphasize the need for sustainable revenue generation strategies, including boosting tax compliance and optimizing non-oil revenue sources, to mitigate future shortfalls.
The timely disbursement of funds by FAAC plays a vital role in sustaining public services and developmental projects across the country. With state governments heavily reliant on federal allocations, efficient management of these resources remains crucial for economic stability and grassroots development. Additionally, the fluctuation in statutory revenue highlights the need for economic diversification to reduce dependency on volatile oil earnings.
As Nigeria navigates economic challenges, the FAAC’s transparent distribution process remains a cornerstone in ensuring equitable resource allocation for national growth and development.
