The Federation Account Allocation Committee (FAAC) has distributed a total of N2.001 trillion to federal, state, and local governments as allocation for July 2025. The committee met in August 2025 under the chairmanship of Wale Edun, Minister of Finance and Coordinating Minister of the Economy.
According to FAAC, the gross total revenue available for sharing in July stood at N3.836 trillion. From this amount, the Federal Government received N735.081 billion, states got N660.349 billion, and local government councils were allocated N485.039 billion. Oil producing states received an additional N120.359 billion as derivation revenue, which is 13% of mineral revenue.
A sum of N152.681 billion was set aside for collection costs while transfers, interventions, and refunds amounted to N1.683 trillion.
The committee’s communique stated that gross Value Added Tax (VAT) collections reached N687.940 billion in July—an increase of about N9.775 billion from the previous month’s figure of N678.165 billion. Of this VAT revenue, N27.517 billion was used for collection costs and N19.813 billion went to transfers and refunds; the remaining balance of N640.610 billion was shared among all levels of government: federal (N96.092 billion), states (N320.305 billion), and local governments (N224.214 billion).
Gross statutory revenue dropped to N3.070 trillion in July from June’s figure of N3.485 trillion—a decrease by roughly N415 billion compared to the prior month.
From statutory revenue, collection costs accounted for N123.597 billion while transfers and refunds totaled about N1.663 trillion; the rest—N1.282 trillion—was distributed with the federal government receiving N613.805 billion, states taking in N311.330 billion, local governments getting N240.023 billion, and oil-producing states obtaining another derivation payment totaling N117.714 billion.
Additionally, electronic money transfer levy proceeds contributed another distribution: out of a total EMTL pool of around N39.168 billion, federal authorities received about N5.640 billion while state and local governments were allocated approximately N18.801 billion and 13.160 billion respectively; collection cost consumed just over 1½ billion naira.
Exchange difference receipts amounted to nearly 40 billion naira; these were divided among tiers with federal government collecting almost half (N19.544 billion), followed by states (N9.913 billion), local governments (N7.643 billion), and oil-producing states (N2 billion plus).
In terms of trends across tax categories during July: petroleum profit tax (PPT), excise duty, EMTL revenues, and oil/gas royalties rose sharply; VAT and import duties increased only slightly; company income tax (CIT) along with CET levies experienced declines.
Overall distributable revenue for July came from four main sources: statutory revenue (N1.282 trillion), VAT (N640 billion), EMTL receipts (about 37 billion naira), and exchange difference payments (~40 billion naira)—adding up to a total allocation figure just over two trillion naira.
During opening remarks at the meeting Wale Edun praised FAAC’s efforts on resource allocation: “The economic reforms embarked upon by the Federal Government are yielding positive results and that our collective efforts will continue to drive growth and development.” He added: “As we continue to work together, I urge us to prioritize prudent management of public resources, ensuring that our nation’s wealth is utilized effectively to meet the needs of our citizens.”