FAAC: FG, states, LGs share record N2.001trn for July

Nigeria’s three tiers of government federal, state, and local have shared a record ₦2.001 trillion as revenue allocation for July 2025, marking the first time the monthly disbursement has crossed the ₦2 trillion threshold.

The announcement followed the Federation Account Allocation Committee (FAAC) meeting held in Abuja for its August 2025 session.

According to the FAAC communiqué, the distributable revenue was made up of:

₦1.282 trillion from statutory revenue

₦640.61 billion from Value Added Tax (VAT)

₦37.601 billion from the Electronic Money Transfer Levy (EMTL)

₦39.745 billion from exchange difference

The milestone allocation is expected to ease fiscal pressures across states and local governments, enabling them to meet developmental and salary obligations.

The statement, issued by Bawa Mokwa, spokesperson for the Office of the Accountant General of the Federation, noted that gross revenue for July stood at N3.836 trillion. From this, N152.681 billion was deducted as collection cost, while N1.683 trillion went to transfers, interventions, refunds and savings.

“Gross statutory revenue of N3,070.127 trillion was received for the month of July 2025. This was lower than the sum of N3,485.235 trillion received in the month of June 2025 by N415.108 billion,” the communiqué said.

It added that VAT revenue rose to N687.94 billion in July from N678.165 billion in June, representing an increase of N9.775 billion.

“The local government council received N485.039 billion, while the sum of N120.359 billion (13% of mineral revenue) was shared with the benefiting state as derivation revenue.

“On the N1,282.872 trillion distributable statutory revenue, the communiqué stated that the Federal Government received N613.805 billion and the State Governments received N311.330 billion.

“The Local Government Councils received N240.023 billion, and the sum of N117.714 billion (13% of mineral revenue) was shared with the benefiting states as derivation revenue.

“From the N640.610 billion distributable Value Added Tax (VAT) revenue, the Federal Government received N96.092 billion, the State Governments received N320.305 billion, and the Local Government Councils received N224.214 billion,” the communique added.