For the first time in the nation’s history, the three tiers of the Nigerian governments have shared a record-breaking N2.001 trillion from the Federation Account, or FAAC for July 2025.
The allocation was announced at the August Federation Account Allocation Committee (FAAC) meeting held in Abuja, marking a significant milestone in national revenue distribution.
The total distributable revenue of N2.001 trillion was derived from multiple revenue streams. This included N1.283 trillion from distributable statutory revenue, N640.610 billion from Value Added Tax (VAT), N37.601 billion from the Electronic Money Transfer Levy (EMTL), and N39.745 billion from Exchange Difference revenue.
According to a communiqué issued by FAAC and made available by the Office of the Accountant General of the Federation’s spokesperson, Bawa Mokwa, the gross revenue available for July 2025 stood at an impressive N3.837 trillion.
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After accounting for necessary deductions, including N152.681 billion for cost of collection and N1.683 trillion for transfers, interventions, refunds, and savings, the remaining N2.001 trillion was distributed among the federal, state, and local governments.
The federal government received the largest share of the statutory revenue at N613.805 billion, while state governments were allocated N311.330 billion, and local government councils received N240.023 billion. An additional N117.714 billion, representing 13% of mineral revenue, was shared among oil-producing states as derivation revenue.
From the VAT revenue pool of N640.610 billion, the federal government received N96.092 billion, state governments obtained N320.305 billion, and local government councils were allocated N224.214 billion.
The distribution reflects the continuing implementation of the revenue sharing formula established by the Nigerian constitution, ensuring that all levels of government receive their designated shares to fund developmental projects and public services across the nation.
cc: Daily Trust NG
