FAAC Distributes N2tr Windfall, Highest Payout This Year
By Patience Ikpeme
The Federation Account Allocation Committee (FAAC) has disbursed a total of N2.001 trillion to the three tiers of government, marking the highest monthly allocation this year.
The revenue, for the month of July 2025, was shared among the Federal Government, states, and local government councils during the August 2025 FAAC meeting.
According to a communiqué issued by the committee, the N2.001 trillion distributable revenue comprised several components: distributable statutory revenue of N1,282.872 trillion,; distributable Value Added Tax (VAT) revenue of N640.610 billion; electronic Money Transfer Levy (EMTL) revenue of N37.601 billion; and exchange Difference of N39.745 billion.
Mr. Bawa Mokwa, Director (Press and Public Relations) at the Office of the Accountant-General of the Federation (OAGF), said that the total gross revenue available for July was N3,836.980 trillion. A total of N152.681 billion was deducted for the cost of collection, while N1,683.471 trillion was set aside for transfers, interventions, refunds, and savings.
The gross statutory revenue for July was N3,070.127 trillion, which was lower than the N3,485.235 trillion received in June by N415.108 billion. However, the gross revenue from VAT showed a slight increase, rising to N687.940 billion in July from N678.165 billion in June.
From the total distributable revenue of N2.001 trillion, the Federal Government received N735.081 billion. The State Governments received a total of N660.349 billion, while the Local Government Councils got N485.039 billion. Additionally, N120.359 billion, which represents 13% of mineral revenue, was shared among the benefiting states as derivation revenue.
A further breakdown of the distributable statutory revenue shows that the Federal Government received N613.805 billion, states got N311.330 billion, and local government councils received N240.023 billion. A sum of N117.714 billion was distributed to states as 13% derivation revenue from this source.
From the VAT revenue, the Federal Government received N96.092 billion, states got N320.305 billion, and local government councils received N224.214 billion. The EMTL revenue was shared as follows: N5.640 billion for the Federal Government, N18.801 billion for states, and N13.160 billion for local government councils. From the Exchange Difference revenue, the Federal Government received N19.544 billion, states got N9.913 billion, and local government councils received N7.643 billion, while N2.643 billion was shared as 13% derivation revenue.
The communiqué noted that Petroleum Profit Tax (PPT), Oil and Gas Royalty, Electronic Money Transfer Levy (EMTL), and Excise Duty increased significantly in July, while VAT and import Duty saw a marginal increase. Companies Income Tax (CIT) and CET Levies, however, recorded decreases.
