A total sum of N1.703 trillion from the Federation Account Allocation Committee (FAAC) was shared among the Federal, States and Local Government Councils as the January 2025 Federation Account Revenue.

This was disclosed at the FAAC meeting held in Abuja on Friday.

The N1.703 trillion total distributable revenue comprised distributable statutory revenue of N749.727 billion, distributable Value Added Tax (VAT) revenue of N718.781 billion, Electronic Money Transfer Levy (EMTL) revenue of N20.548 billion and Augmentation of N214 billion.

A communiqué issued by FAAC stated that total gross revenue of N2.641 trillion was available in the month of January 2025.

The total deduction for the cost of collection was N107.786 billion, while total transfers, interventions, refunds, and savings were N830.663 billion.

According to the communiqué, gross statutory revenue of N1.848 trillion was received for the month of January 2025. This was higher than the sum of N1.226 trillion received in the month of December 2024 by N622.125 billion.
Gross revenue of N771.886 billion was available from VAT in January 2025. This was higher than the N649.561 billion available in the month of December 2024 by N122.325 billion.

The communiqué stated that from the N1.703 trillion total distributable revenue, the federal government received a total sum of N552.591 billion, and the State Governments received a total sum of N590.614 billion.

The Local Government Councils received a total sum of N434.567 billion, and a total sum of N125.284 billion (13% of mineral revenue) was shared to the benefiting States as derivation revenue.

On the N749.727 billion distributable statutory revenue, the communiqué stated that the Federal Government received N343.612 billion, and the State Governments received N174.285 billion.

The Local Government Councils received N134.366 billion, and the sum of N97.464 billion (13% of mineral revenue) was shared to the benefiting States as derivation revenue.

From the N718.781 billion distributable VAT revenue, the Federal Government received N107.817 billion, the State Governments received N359.391 billion, and the Local Government Councils received N251.573 billion.

A total sum of N3.082 billion was received by the federal government from the N20.548 billion Electronic Money Transfer Levy (EMTL). The State Governments received N7.192 billion, and the Local Government Councils received N10.274 billion.

From the N214 billion Augmentation, the Federal Government received N98.080 billion, and the State Governments received N49.747 billion.

The Local Government Councils received N38.353 billion, and a total sum of N27.820 billion (13% of mineral revenue) was shared to the benefiting States as derivation revenue.

In January 2025, VAT, Petroleum Profit Tax (PPT), Companies Income Tax (CIT), Excise Duty, Import Duty and CET Levies increased significantly while Electronic Money Transfer Levy (EMTL) and Oil and Gas Royalty decreased considerably.

As Senate commences public hearing on Tax Reform bills, President of the Nigerian Senate, Godswill Akpabio has called on Nigerians to embrace the tax reform in the interest of the country.

Senator Akpabio made the call in Abuja at the beginning of a two-day public hearing organised by the Senate Committee on Finance on the proposed four tax reform bills.

The four Bills are; The Nigeria Tax Bill 2024, The Nigeria Tax Administration Bill 2024, The Nigeria Revenue Service Establishment Bill 2024 and the Joint Revenue Board Establishment Bills 2024.

Akpabio in his speech titled, “New Dawn Embracing Tax Reform for a Prosperous Nigeria”, said the public hearing was a transformative step forward in the nation’s collective journey toward economic renewal and prosperity for all Nigerians.

He said the public hearing was a profound responsibility that stakeholders must embrace with courage, wisdom and a steadfast commitment to the Nigerian people.

He said as Nigerians look into the future, they must remember that a nation that fails to adapt its revenue system to the realities of the time risks stagnation and decline.

Akpabio said Nigeria had chosen to leave behind out-dated tax practices and bureaucratic hurdles, to a tax administration that would be robust, transparent and conducive to business.

He said the public hearing represents more than a legislative requirement, saying that it was a call to collective action.

According to him, the public hearing is a platform for dialogue where lawmakers, tax administrators, businesses operators and citizens come together to craft a fair, transparent and effective tax regime that reflects the interests of all.

He said the four bills sought to harmonise revenue administration across all tiers of government.

“The bills seek to reduce the cost of tax collection and enhance compliance, foster transparency, accountability and efficiency in tax administration.”

According to him, the bill will introduce digital innovations to simplify tax payments and close loopholes, while ensuring fairness, protect vulnerable taxpayers and create an environment ripe for economic growth.

“We cannot afford to be fragmented in our approach to revenue generation, instead, we must come together, as Federal, State and Local Governments, alongside the private sector and civil society to create a tax system that truly works for all.”

He said the 10th National Assembly was fully committed to enacting legislative reforms that would strengthen the nation’s economic foundation, empower businesses and enhance accountability within the government.

“The success of this public hearing hinges on your active engagement and I encourage all stakeholders to contribute meaningfully to this dialogue.

“Let us use this moment, not just for ourselves, but for future generations, to lay the foundation for a stronger, more resilient and prosperous Nigeria.”

Chairman of the Committee, Sen. Sani Musa said the committee acknowledges concerns about marginalization, disproportionate sharing and possible biases in tax administration and revenue allocation.

He, however, assured that the process of the tax reform would be thorough, and inclusive and guided by national interest.

He said the National Assembly’s goal was to develop a tax framework that promotes economic prosperity, encourages investment and strengthen fiscal sustainability.

He also said that transparency, fairness and inclusivity would be the guiding principles throughout the process.

He said the bills aimed to simplify tax compliance, improve revenue collection and eliminate inefficiencies.

Sani urged all stakeholders, tax professionals, civil society organisations and the general public to actively contribute to the discussion, saying that their inputs were vital in shaping a tax regime that works for Nigerians.

The Minister of Finance and Co-ordinating Minister of the Economy, Mr Wale Edun said there was need for the all-important reforms in the nation’s tax administration, given the need to improve revenue generation for infrastructure development and economic growth.

He said the public hearing would give opportunity for stakeholders to make inputs and be carried along in the process.

The event was attended by some revenue generating agencies such as Nigeria Custom Service,(NCS), Federal Inland Revenue Service (FIRS) and Nigerian National Petroleum Company Limited (NNPCL).

As the selection process for a new Accountant General of the Federation (AGF) gains momentum, a civil society organization (CSO),under the aegis of Ethics and Compliance Officers Association of Africa – ECOA, has urged President Bola Tinubu to prioritize transparency and accountability in his decision-making—qualities they say Afolabi Idowu Omoniwa exemplifies.

In a statement signed by its convener, Professor Babatunde Akinsanya, the group emphasized the need for a thorough vetting of all shortlisted directors to prevent any appointment that could cast Tinubu’s administration in a negative light.

“Following our extensive review of the candidates vying for the position, Afolabi Idowu stands out as the most qualified,” the statement read.

The CSO highlighted Afolabi’s credentials, noting that he is not only a seasoned accountant with extensive experience in public sector finance but also someone who has risen through the ranks to the peak of his career.
“For over two decades, he has handled financial responsibilities across various ministries and government departments with an unblemished record,” the statement continued.

The organization further stressed the importance of appointing individuals of integrity, stating that such a sensitive office demands accountability and transparency.

“Under no circumstances should individuals with questionable records be considered for a role that is central to financial oversight and governance,” the group cautioned.

Additionally, the CSO pointed out the importance of regional balance in federal appointments, arguing that the AGF and the Minister of Finance should not hail from the same geopolitical zone.

“In this instance, Afolabi Idowu is from the North Central geopolitical zone, ensuring there is no conflict of interest in the appointment process,” the statement added.

The group however reaffirmed that Afolabi Idowu is the best candidate for the role and urged President Tinubu to look no further in his search for a competent Accountant General.