The Federation Account Allocation Committee (FAAC) has shared N2 trillion to the three tiers of government for July 2025.
This was disclosed in a communiqué issued at the end of its August meeting chaired by the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun.
Mr. Muhammed Manga, Director of Information and Public Relations, Ministry of Finance, said in a statement on Friday that the gross revenue for the month stood at N3.83 trillion. Out of this amount, N2 trillion was distributed to the Federal Government, States and Local Government Councils.
From the shared sum, the Federal Government received N735.08 billion, States got N660.34 billion, while Local Governments collected N485.03 billion. Oil-producing States received N120.35 billion as 13 per cent derivation.
The communiqué noted that N152.68 billion was set aside for collection costs, while N1.68 trillion went to transfers, interventions and refunds.
VAT revenue rises
Revenue from Value Added Tax (VAT) in July was N687.94 billion, higher than the N678.16 billion recorded in June, representing an increase of N9.77 billion.
After deductions, N640.61 billion was shared: Federal Government received N96.09 billion, States got N320.30 billion, and Local Governments received N224.21 billion.
For statutory revenue, N3.07 trillion was recorded in July, lower by N415.10 billion compared to the N3.48 trillion in June. After deductions, N1.28 trillion was distributed: Federal Government received N613.81 billion, States got N311.33 billion, Local Governments collected N240.02 billion, while oil-producing States received N117.71 billion as derivation.
From the Electronic Money Transfer Levy (EMTL) of N39.16 billion, the Federal Government got N5.64 billion, States received N18.80 billion, and Local Governments got N13.16 billion, with N1.56 billion for collection costs.
In addition, from N39.74 billion realised from exchange difference, the Federal Government received N19.54 billion, States got N9.91 billion, Local Governments collected N7.64 billion, while N2.64 billion was shared to oil-producing States.
Revenue performance
The communiqué stated that Petroleum Profit Tax, excise duty, EMTL, oil and gas royalties recorded significant increases, while VAT and import duty rose marginally. Company Income Tax and CET levies, however, declined.
In his remarks, Mr. Edun commended FAAC members for their diligence in ensuring fair allocation of resources. He said the Federal Government’s economic reforms are beginning to yield positive results, and assured that collective efforts will continue to drive growth and development.