The Federation Account Allocation Committee (FAAC) has shared a total of N2.001 trillion among the Federal Government, State Governments, and Local Government Councils for the month of July 2025. The meeting, chaired by the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, was held in August 2025.
The money came from a gross total of N3.836 trillion, which included revenues from oil, taxes, levies, and exchange differences. After deductions for collection costs and transfers, the balance was shared among the three levels of government.
How the N2.001 Trillion Was Shared
- Federal Government: N735.081 billion
- States: N660.349 billion
- Local Government Councils: N485.039 billion
- Oil Producing States (Derivation – 13%): N120.359 billion
In addition, N152.681 billio was set aside for the cost of collection, while N1.683 trillion went to transfers, interventions, and refunds.
Breakdown of Revenues
Value Added Tax (VAT):
- Total collected: N687.940 billion (higher than June’s N678.165 billion).
- After deductions, N640.610 billion was shared:
- Federal Government: N96.092 billion
- States: N320.305 billion
- LGAs: N224.214 billion
Statutory Revenue:
- Total: N3.070 trillion (lower than June’s N3.485 trillion).
- After deductions, N1.282 trillion was shared:
- Federal Government: N613.805 billion
- States: N311.330 billion
- LGAs: N240.023 billion
- Derivation (Oil producing states): N117.714 billion
Electronic Money Transfer Levy (EMTL):
- Total shared: N39.168 billion
- Federal Government: N5.640 billion
- States: N18.801 billion
- LGAs: N13.160 billion
Exchange Difference:
- Total shared: N39.745 billion
- Federal Government: N19.544 billion
- States: N9.913 billion
- LGAs: N7.643 billion
- Oil producing states: N2.645 billion
Revenue Performance
The communique stated that revenue from Petroleum Profit Tax (PPT), Excise Duty, EMTL, and Oil & Gas Royalties rose significantly, while VAT and Import Duty saw slight increases. However, Company Income Tax (CIT) and CET Levies declined.
Final Distribution
The total distributable amount of N2.001 trillion came from:
- Statutory Revenue: N1.282 trillion
- VAT: N640.610 billion
- EMTL: N37.601 billion
- Exchange Difference: N39.745 billion
The Ministry explained that this sharing ensures that all levels of government have funds to pay salaries, run projects, and deliver public services.
