The Federation Account Allocation Committee (FAAC) disbursed a total of N2.001 trillion in July 2025 revenue to the Federal Government, states, and local government councils. This marks the second consecutive month of growth in allocations, representing a 10% increase from the N1.818 trillion shared in June. This positive trend follows a 9.6% rise recorded in June, indicating a consistent upward trajectory in federally distributable revenue. The details of the allocation were released in a communiqué following the FAAC meeting in Abuja. The statement highlighted the composition of the distributable revenue, which included N1.283 trillion from statutory revenue, N640.610 billion from Value Added Tax (VAT), N37.601 billion from Electronic Money Transfer Levy (EMTL), and N39.745 billion from exchange differences.
The communiqué provided a comprehensive breakdown of the revenue generation and distribution process. The total gross revenue available for July 2025 was N3.837 trillion. From this amount, N152.681 billion was deducted for cost of collection, and N1.683 trillion was allocated for transfers, interventions, refunds, and savings. This left the distributable amount of N2.001 trillion. The gross statutory revenue for July, which stood at N3.070 trillion, showed a decrease of N415.108 billion compared to the N3.485 trillion recorded in June. However, VAT receipts saw a marginal increase, rising to N687.940 billion in July from N678.165 billion in June, representing a gain of N9.775 billion.
The distribution of the N2.001 trillion followed the established formula. The Federal Government received the largest share, amounting to N735.081 billion. The states received N660.349 billion, while the local government councils received N485.039 billion. In addition, oil-producing states received N120.359 billion as derivation revenue, representing 13% of mineral revenue. This allocation aims to compensate these states for the environmental and social impacts of oil exploration and production within their territories.
The communiqué further detailed the specific distribution from each revenue stream. From the N1.283 trillion statutory revenue, the Federal Government received N613.805 billion, the states received N311.330 billion, and local councils received N240.023 billion. The derivation allocation from this stream amounted to N117.714 billion. The VAT revenue of N640.610 billion was shared as follows: N96.092 billion to the Federal Government, N320.305 billion to the states, and N224.214 billion to the local government councils. The EMTL collections, totaling N37.601 billion, were distributed with N5.640 billion going to the Federal Government, N18.801 billion to the states, and N13.160 billion to the local councils.
The exchange difference of N39.745 billion was also distributed, with the Federal Government receiving N19.544 billion, state governments receiving N9.913 billion, and local government councils receiving N7.643 billion. An additional N2.643 billion, representing 13% of mineral revenue from the exchange difference, was shared with the oil-producing states as derivation revenue. This comprehensive breakdown provides transparency in the revenue allocation process, demonstrating how funds are distributed across different levels of government.
The FAAC communiqué also provided insights into the performance of various revenue streams. Petroleum Profit Tax, Oil and Gas Royalty, EMTL, and Excise Duty showed significant increases, contributing to the overall growth in revenue. VAT and Import Duty also experienced marginal increases. However, Companies’ Income Tax and CET Levies recorded decreases. The July allocation is anticipated to provide much-needed financial support to governments at all levels, enabling them to meet their expenditure obligations, which include salaries, debt servicing, and funding crucial capital projects that contribute to national development.
