FAAC’s Allocation To 3 Tiers Rises By 9.6% To N1.818trn

The Federation Account Allocation Committee (FAAC) has distributed a total of N1.818 trillion as revenue generated in June 2025 to the federal government, state governments, and local government councils.

This marks a 9.6 per cent rise, equivalent to an additional N159 billion compared to the N1.659 trillion distributed in May 2025.

This was disclosed in a communiqué issued at the July 2025 FAAC meeting held in Abuja, according to a statement released by Bawa Mokwa, director of Press at the Office of the Accountant General of the Federation.

The total distributable revenue of N1.818 trillion comprised statutory revenue of N1.018 trillion, Value Added Tax (VAT) revenue of N631.507 billion, Electronic Money Transfer Levy (EMTL) revenue of N29.165 billion, Exchange Difference revenue of N38.849 billion, and an augmentation of N100 billion from non-mineral revenue.

According to the communiqué, the total gross revenue available for June 2025 stood at N4.232 trillion. From this amount, deductions for cost of revenue collection accounted for N162.786 billion, while total transfers, interventions, refunds, and savings amounted to N2.251 trillion.

The gross statutory revenue for the month was N3.485 trillion—an increase of N1.390 trillion over the N2.094 trillion received in May 2025. However, the gross revenue from VAT declined, with N678.165 billion recorded in June, lower than the N742.820 billion generated in May by N64.655 billion.

Out of the N1.818 trillion distributable revenue, the Federal Government received N645.383 billion, the State Governments received N607.417 billion, and the Local Government Councils received N444.853 billion. Additionally, N120.759 billion, representing 13 per cent of mineral revenue, was allocated to the benefiting oil-producing states as derivation revenue.

Breaking down the N1.018 trillion statutory revenue, the federal government received N474.455 billion, the state governments got N240.650 billion, while the Local Government Councils received N185.531 billion. Benefiting states received N118.256 billion as 13 per cent derivation revenue.

From the N631.507 billion VAT pool, the federal government received N94.726 billion, the states received N315.754 billion, and the local governments got N221.027 billion.

In addition, the N29.165 billion EMTL was shared as follows: federal government – N4.375 billion; States – N14.582 billion; and local governments – N10.208 billion.

From the N38.849 billion exchange difference revenue, the federal government got N19.147 billion, states received N9.712 billion, and local governments received N7.487 billion. A further N2.503 billion was allocated to oil-producing states as derivation revenue.

From the N100 billion augmentation from non-mineral revenue, the federal government received N52.680 billion, the states received N26.720 billion, and local government councils received N20.600 billion.

FAAC also reported significant increases in Companies Income Tax (CIT), Petroleum Profit Tax (PPT), and the Electronic Money Transfer Levy (EMTL) in June 2025. However, it noted considerable declines in Oil and Gas Royalties, VAT, Import and Excise Duties, and Common External Tariff (CET) Levies.