FAAC shares N2trn among FG, states, LGs in July

The Federation Account Allocation Committee (FAAC) says it distributed N2 trillion among the three tiers of government in July 2025.

The disclosure was made at the August FAAC meeting chaired by Wale Edun, minister of finance and coordinating minister of the economy.

In a statement on Friday, Muhammed Manga, director of information and public relations at the ministry of finance, said the gross revenue for July stood at N3.83 trillion. Out of this, N2 trillion was shared among the federal, state and local governments.

From the total distributable sum, the federal government received N735.08 billion, states got N660.34 billion, while local councils received N485.03 billion. Oil-producing states were allocated N120.35 billion as 13% derivation.

FAAC added that N152.68 billion was set aside as cost of collection, while N1.68 trillion was used for transfers, interventions and refunds.

VAT Revenue Rises

The committee noted that value-added tax (VAT) revenue in July rose to N687.94 billion from N678.16 billion in June, reflecting a gain of N9.77 billion.

“From that amount, the sum of N27.51 billion was allocated for the cost of collection and N19.81 billion was given for transfers, interventions and refunds,” the statement read.

“The remaining N640.61 billion was distributed to the three tiers of government: the federal government received N96.09 billion, states received N320.31 billion, and local government councils got N224.21 billion.”

Statutory revenue, however, fell to N3.07 trillion in July from N3.48 trillion in June, representing a shortfall of N415.10 billion. From this amount, N123.59 billion went for collection costs, and N1.66 trillion for transfers and refunds.

The balance of N1.28 trillion was shared as follows: N613.81 billion to the federal government, N311.33 billion to states, N240.02 billion to local councils, and N117.71 billion to oil-producing states as derivation.

For electronic money transfer levy (EMTL), the federal government received N5.64 billion out of N39.16 billion, while states got N18.80 billion, local governments N13.16 billion, and N1.56 billion was taken as cost of collection.

The committee added that N39.74 billion from exchange difference was also distributed: the federal government got N19.54 billion, states N9.91 billion, local governments N7.64 billion, and oil-producing states N2.64 billion.

According to FAAC, petroleum profit tax, excise duty, EMTL, and oil and gas royalties increased significantly during the month, while VAT and import duty recorded marginal growth. Company income tax (CIT) and CET levies declined.

The total distributable revenue for July, FAAC said, comprised N1.28 trillion statutory revenue, N640.61 billion VAT, N37.60 billion EMTL, and N39.74 billion exchange difference, amounting to N2 trillion.

Edun commended the FAAC members for what he described as their “diligent efforts” in ensuring the timely allocation of resources. He added that the government’s ongoing reforms are beginning to deliver results that will drive sustainable growth.