The Federation Account Allocation Committee (FAAC) has shared N2.001 trillion among the Federal Government, states and Local Government councils as July 2025 revenue, marking the second consecutive month of growth in allocations.
This includes N120.359 billion, representing 13% of mineral revenue, shared to oil-producing states as derivation revenue.
The figure represents a 10% increase from the N1.818 trillion shared in June, a difference of N183 billion. It follows the 9.6% rise recorded in June, showing a consistent upward trend in federally distributable revenue.
According to a statement by the Director of Press and Public Relations at the Office of the Accountant-General of the Federation, Bawa Mokwa reflecting the communiqué issued after the FAAC meeting in Abuja on Friday: ‘A total sum of N2.001 trillion, being July 2025 Federation Account Revenue, has been shared to the Federal Government, States and the Local Government Councils’.
The communiqué explained that the distributable revenue comprised statutory revenue of N1.283 trillion, Value Added Tax (VAT) of N640.610 billion, Electronic Money Transfer Levy (EMTL) of N37.601 billion and exchange difference of N39.745 billion.
It added: ‘Total gross revenue of N3.837 trillion was available in the month of July 2025. Total deduction for cost of collection was N152.681 billion while total transfers, interventions, refunds and savings was N1.683 trillion’.
The gross statutory revenue for July was N3.070 trillion, lower by N415.108 billion compared with the N3.485 trillion recorded in June.
VAT receipts, however, increased slightly to N687.940 billion from N678.165 billion in June, showing a gain of N9.775 billion.
From the distributable pool of N2.001 trillion, the statement noted that the Federal Government received N735.081 billion, the states N660.349 billion, and the local government councils N485.039 billion.
The communiqué also broke down the distribution from each revenue stream. Out of the N1.283 trillion statutory revenue, the Federal Government received N613.805 billion, states N311.330 billion, and local councils N240.023 billion, while N117.714 billion went to derivation.
From the N640.610 billion VAT revenue, the Federal Government received N96.092 billion, states N320.305 billion, and the local councils N224.214 billion.
For EMTL collections of N37.601 billion, N5.640 billion went to the Federal Government, N18.801 billion to the states and N13.160 billion to local councils.
On the N39.745 billion exchange difference, ‘The Federal Government received N19.544 billion and the state governments received N9.913 billion. The Local Government Councils received N7.643 billion, while the sum of N2.643 billion (13% of mineral revenue) was shared to the benefiting states as derivation revenue’, the statement noted.
The FAAC further observed trends in revenue performance. ‘In July 2025, Petroleum Profit Tax, Oil and Gas Royalty, Electronic Money Transfer Levy and Excise Duty increased significantly while Value Added Tax and Import Duty increased marginally. Companies Income Tax and CET Levies recorded decreases’, the statement concluded.
The July allocation is expected to support governments at all levels in meeting expenditure needs, including salaries, debt servicing and capital projects.
