FAAC Disburses N2trn to Three Tiers of Government in July

By Oluwakemi Kindness

The Federation Account Allocation Committee (FAAC) has shared a total sum of N2.001 trillion as July 2025 Federation Account Revenue to the Federal Government, states, and local government councils.

The allocation was made at the FAAC meeting held in Abuja on Friday, according to a communiqué issued after the session.

The N2.001 trillion distributable revenue comprised:

*Statutory revenue:* N1.283 trillion

*Value Added Tax (VAT):* N640.61 billion

*Electronic Money Transfer Levy (EMTL):* N37.60 billion

*Exchange Difference:* N39.75 billion

The communiqué disclosed that a gross revenue of N3.837 trillion was available in July. From this amount, N152.68 billion was deducted as the cost of collection, while N1.683 trillion was set aside for transfers, interventions, refunds, and savings.

Breakdown of Allocation

From the total distributable revenue:

*The Federal Government received N735.08 billion*.

*The 36 states received N660.35 billion*.

*The 774 local government councils received N485.04 billion*.

*N120.36 billion was shared as 13% derivation revenue to oil-producing states*.

For the N1.283 trillion statutory revenue, the Federal Government received N613.81 billion, states received N311.33 billion, LGs got N240.02 billion, while N117.71 billion was shared as derivation revenue.

From the N640.61 billion VAT revenue, the Federal Government received N96.09 billion, states received N320.31 billion, and LGs received N224.21 billion.

From the N37.60 billion EMTL, the Federal Government received N5.64 billion, states received N18.80 billion, and LGs received N13.16 billion.

From the N39.75 billion Exchange Difference, the Federal Government received N19.54 billion, states received N9.91 billion, LGs received N7.64 billion, and N2.64 billion was shared as derivation revenue.

Revenue Performance

The communiqué noted that gross statutory revenue for July stood at N3.07 trillion, a decline of N415.11 billion compared to N3.49 trillion recorded in June.

However, VAT collections increased slightly to N687.94 billion in July from N678.17 billion in June.

It further stated that Petroleum Profit Tax (PPT), oil and gas royalties, EMTL, and excise duty recorded significant increases, while VAT and import duty rose marginally. Companies Income Tax (CIT) and CET levies, however, declined.