The Federation Account Allocation Committee (FAAC) has disbursed N2.001 trillion to the three tiers of government as the federation allocation for July 2025.
The funds, which were shared from a gross total of N3.836 trillion, were confirmed at the FAAC meeting chaired by the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun.
According to a statement from the Federal Ministry of Finance on Saturday, the distributable amount includes revenue from Gross Statutory Revenue, Value Added Tax (VAT), Electronic Money Transfer Levy (EMTL), and Exchange Difference.
The breakdown of the total amount shows that the Federal Government (FG) received the largest share with N735.081 billion. States collectively received N660.349 billion, while the Local Government Councils were allocated N485.039 billion.
Additionally, oil-producing states received N120.359 billion as their 13% derivation fund. The committee’s communique also provided details on the components of the shared revenue.
The gross revenue from VAT for July 2025 was N687.940 billion, a marginal increase of N9.775 billion compared to the N678.165 billion distributed in the previous month.
After deductions for collection costs and refunds, a distributable sum of N640.610 billion from VAT was shared among the three tiers of government.
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The Gross Statutory Revenue for the month was N3.070 trillion, representing a decrease of N415.108 billion from the N3.485 trillion recorded in the preceding month.
Following deductions, the distributable portion of the statutory revenue was N1.282 trillion.
Other sources of revenue included N39.168 billion from the Electronic Money Transfer Levy (EMTL) and N39.745 billion from Exchange Difference.
FAAC noted an increase in several revenue streams, including Petroleum Profit Tax (PPT), Excise Duty, Electronic Money Transfer Levy (EMTL), and Oil and Gas Royalty.
Value Added Tax (VAT) and Import Duty also saw a slight increase, while Company Income Tax (CIT) and CET Levies experienced a decrease.
In total, the N2.001 trillion distributable revenue for the month of July was composed of N1.282 trillion from Statutory Revenue, N640.610 billion from VAT, N37.601 billion from EMTL, and N39.745 billion from Exchange Difference.
