ABUJA, NIGERIA – The Federation Account Allocation Committee (FAAC) has disbursed ₦1.659 trillion to the three tiers of government as revenue accrued in May 2025.
The disbursement followed FAAC’s monthly meeting held in Abuja on Wednesday, according to a communiqué signed by Bawa Mokwa, Director of Press at the Office of the Accountant General of the Federation.
Included in the shared revenue is ₦27.667 billion generated from the Electronic Money Transfer Levy (EMTL), with the Federal Government receiving ₦4.150 billion.
States got ₦13.833 billion from the EMTL, while local government councils received ₦9.683 billion, the communiqué revealed.
The EMTL, introduced as a financial inclusion tool, has come under scrutiny for burdening digital transactions, despite its revenue boost to public coffers.
A civil servant in Kogi State, Sarah Agbo, expressed concern: “While government benefits from this levy, it pinches ordinary citizens with each transfer we make.”
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Statutory revenue contributed ₦86.895 billion to the pool; VAT accounted for ₦691.714 billion, EMTL yielded ₦27.667 billion, and exchange gains added ₦76.614 billion.
Out of the total ₦1.659 trillion shared, the Federal Government received ₦538.004 billion, states ₦577.841 billion, and local governments ₦419.968 billion.
Oil-producing states received an additional ₦124.076 billion representing 13% derivation revenue, primarily from mineral sources, as part of their statutory entitlement.
Mokwa noted an increase in gross statutory revenue for May, which stood at ₦2.094 trillion, up from ₦2.084 trillion in April, despite a dip in EMTL collections.
He added: “There was a notable rise in VAT and Companies Income Tax, but Electronic Money Transfer Levy and Oil Royalties declined.”
Gross revenue in May totaled ₦2.942 trillion. Deductions included ₦111.908 billion for collection costs and ₦1.171 trillion for transfers, interventions, and refunds.
Despite a general upward trend, analysts warn that continued reliance on levies like EMTL may affect Nigeria’s push toward a cashless economy.
An Abuja-based tax consultant, Remi Olawale, said, “Electronic levies may deter small businesses from embracing digital payments, which contradicts our financial inclusion goals.”
The FAAC reiterated its commitment to transparent revenue sharing, stating that ongoing reforms aim to improve non-oil revenue generation and fiscal discipline at all levels.