FG, States, LGs Share N2.001trn for July, Says FAAC
The Federation Account Allocation Committee (FAAC) has shared a total of N2.001 trillion among the three tiers of government as federation allocation for July 2025.
The allocation was announced at FAAC’s August 2025 meeting, which was chaired by the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun. The disbursed revenue was drawn from a gross total of N3.836 trillion, comprising statutory revenue, Value Added Tax (VAT), Electronic Money Transfer Levy (EMTL), and exchange difference.
According to the communique issued at the end of the meeting, the Federal Government received N735.081 billion, states got N660.349 billion, local government councils received N485.039 billion, while oil-producing states earned N120.359 billion as 13% derivation from mineral revenue.
The document further revealed that N152.681 billion was set aside for the cost of collection, while N1.683 trillion was allocated for transfers, interventions, and refunds.
On VAT, gross revenue available in July stood at N687.940 billion, a slight rise of N9.775 billion compared to the N678.165 billion shared in June. From this amount, N27.517 billion went for collection costs and N19.813 billion for transfers and refunds. The balance of N640.610 billion was distributed among the three tiers of government, with the Federal Government receiving N96.092 billion, states N320.305 billion, and local governments N224.214 billion.
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For statutory revenue, the gross inflow was N3.070 trillion, lower than the N3.485 trillion recorded in June by N415.108 billion. After deductions for cost of collection and transfers, N1.282 trillion was available for sharing: the Federal Government received N613.805 billion, states got N311.330 billion, local governments N240.023 billion, while oil-producing states received N117.714 billion as derivation.
The communique also disclosed that revenue from EMTL contributed N39.168 billion, distributed as follows: Federal Government – N5.640 billion, states – N18.801 billion, and local governments – N13.160 billion, with N1.567 billion set aside for collection cost.
Additionally, N39.745 billion from exchange difference was shared, with the Federal Government receiving N19.544 billion, states N9.913 billion, local governments N7.643 billion, and oil-producing states N2.645 billion.
Revenue performance showed significant increases in Petroleum Profit Tax (PPT), excise duty, EMTL, and oil and gas royalties. VAT and import duty rose marginally, while company income tax (CIT) and CET levies recorded declines.
Overall, distributable revenue for July comprised N1.282 trillion statutory revenue, N640.610 billion VAT, N37.601 billion EMTL, and N39.745 billion exchange difference, summing up to N2.001 trillion.
In his opening remarks at the meeting, Finance Minister Wale Edun commended the committee for its diligence in resource allocation. He said ongoing economic reforms were beginning to yield results, stressing the need for prudent management of public funds.
“Better days are ahead. As we continue to work together, I urge us to prioritize prudent management of public resources, ensuring that our nation’s wealth is utilized effectively to meet the needs of our citizens,” Edun stated.
By PRNigeria
