The Federation Account Allocation Committee (FAAC) has shared a total of N2.001 trillion to the three tiers of government as allocation for July 2025.
The distribution followed the committee’s August meeting chaired by the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun.
The shared sum came from a gross revenue inflow of N3.836 trillion, comprising statutory revenue, Value Added Tax (VAT), Electronic Money Transfer Levy (EMTL), and exchange gains.
Out of the distributable amount, the Federal Government (FG) received N735.081 billion, while the states got N660.349 billion.
Local Government Councils (LGC) collected N485.039 billion, and oil-producing states earned N120.359 billion as 13% derivation.
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FAAC explained that N152.681 billion went for the cost of revenue collection, while N1.683 trillion was set aside for transfers, interventions, and refunds.
On sectoral breakdowns, VAT revenue for the month stood at N687.940 billion, slightly higher than June’s figure of N678.165 billion.
From this, N640.610 billion was distributed after statutory deductions, with the Federal Government receiving N96.092 billion, the states N320.305 billion, and Local Government Councils N224.214 billion.
Statutory revenue contributed N3.070 trillion, which was lower than the preceding month by N415.108 billion.
After deductions, N1.282 trillion was shared, with the Federal Government taking N613.805 billion, states N311.330 billion, councils N240.023 billion, and oil-producing states N117.714 billion as derivation.
Similarly, FAAC allocated N39.168 billion from EMTL and N39.745 billion from exchange differences to the three tiers of government.
According to the committee, revenue from Petroleum Profit Tax, excise duty, EMTL, and oil and gas royalties recorded significant growth, while VAT and import duty rose marginally. However, Company Income Tax and CET levies experienced declines.
