The Federation Account Allocation Committee (FAAC) reported the allocation of N2 trillion to the three tiers of government in July 2025.
This information was revealed at the August FAAC meeting, presided over by Wale Edun, minister of finance and coordinating minister of the economy.
Muhammed Manga, director of information and public relations at the ministry of finance, stated in a press release on Friday that July’s gross revenue totaled N3.83 trillion, of which N2 trillion was distributed among federal, state, and local governments.
The Federal Government received N735.08 billion, states received N660.34 billion, and local councils received N485.03 billion from the total distributable sum.
Furthermore, N120.35 billion was allocated to oil-producing states as 13% derivation. Additionally, FAAC reported that N152.68 billion was set aside for the cost of collection, while N1.68 trillion was utilized for transfers, interventions, and refunds.
Rise in VAT Revenue
The committee noted that value-added tax (VAT) revenue rose to N687.94 billion in July from N678.16 billion in June, showing an increase of N9.77 billion.
“From that amount, the sum of N27.51 billion was allocated for the cost of collection and N19.81 billion was given for transfers, interventions and refunds,” the statement read.
“The remaining N640.61 billion was distributed to the three tiers of government: the federal government received N96.09 billion, states received N320.31 billion, and local government councils got N224.21 billion.”
Statutory revenue decreased to N3.07 trillion in July from N3.48 trillion in June, indicating a shortfall of N415.10 billion. Out of this amount, N123.59 billion was allocated for collection costs, while N1.66 trillion was utilized for transfers and refunds.
The remaining balance of N1.28 trillion was distributed as follows: N613.81 billion to the federal government, N311.33 billion to states, N240.02 billion to local councils, and N117.71 billion to oil-producing states as derivation.
Furthermore, the Federal Government received N5.64 billion from the electronic money transfer levy (EMTL), while states obtained N18.80 billion, local governments received N13.16 billion, and N1.56 billion was deducted as the cost of collection.
The committee added that N39.74 billion from exchange difference was also distributed: the federal government got N19.54 billion, states N9.91 billion, local governments N7.64 billion, and oil-producing states N2.64 billion.
According to FAAC, petroleum profit tax, excise duty, EMTL, and oil and gas royalties increased significantly during the month, while VAT and import duty recorded marginal growth. Company income tax (CIT) and CET levies declined.
The total distributable revenue for July, FAAC said, comprised N1.28 trillion statutory revenue, N640.61 billion VAT, N37.60 billion EMTL, and N39.74 billion exchange difference, amounting to N2 trillion.
Edun commended the FAAC members for what he described as their “diligent efforts” in ensuring the timely allocation of resources. He added that the government’s ongoing reforms are beginning to deliver results that will drive sustainable growth.
