The Federation Account Allocation Committee (FAAC) has distributed a total of ₦2.001 trillion among the three tiers of government—federal, state, and local councils—as revenue accrued in July 2025.
The allocation was confirmed at FAAC’s August meeting held in Abuja, where a communiqué detailed the breakdown of distributable revenue, which comprised statutory revenue, Value Added Tax (VAT), the Electronic Money Transfer Levy (EMTL), and exchange difference.
According to the communiqué, gross revenue available in July stood at ₦3.837 trillion. From this amount, ₦152.681 billion was deducted as the cost of collection, while ₦1.683 trillion was set aside for transfers, interventions, refunds, and savings.
The FAAC disclosed that gross statutory revenue for the month was ₦3.070 trillion—₦415.108 billion lower than the ₦3.485 trillion recorded in June. Conversely, VAT revenue increased to ₦687.940 billion in July, a rise of ₦9.775 billion from the ₦678.165 billion generated in June.
From the distributable pool of ₦2.001 trillion, the Federal Government received ₦735.081 billion, states received ₦660.349 billion, while local councils got ₦485.039 billion. Oil-producing states also shared ₦120.359 billion as 13 per cent derivation revenue.
A further breakdown showed that, from statutory revenue alone, the Federal Government received ₦613.805 billion, the states ₦311.330 billion, local governments ₦240.023 billion, and oil-producing states ₦117.714 billion as derivation funds.
Out of the ₦640.610 billion distributable VAT, the Federal Government received ₦96.092 billion, states ₦320.305 billion, and local councils ₦224.214 billion.
For the ₦37.601 billion generated from the Electronic Money Transfer Levy, the Federal Government got ₦5.640 billion, the states ₦18.801 billion, and the councils ₦13.160 billion. Similarly, from the ₦39.745 billion realised as exchange difference, the Federal Government received ₦19.544 billion, states ₦9.913 billion, and local governments ₦7.643 billion, while oil-producing states received an additional ₦2.643 billion as derivation.
The communiqué also highlighted revenue trends for July, noting that “Petroleum Profit Tax, Oil and Gas Royalty, the Electronic Money Transfer Levy, and Excise Duty recorded significant increases, while Value Added Tax and Import Duty rose only marginally. However, Companies Income Tax and CET levies declined within the same period.”
