Abuja, August 2025, Nigeria’s Federation Account Allocation Committee (FAAC) has announced that the federal allocation for July 2025 hit an all-time high of N2.001 trillion, the highest distributable revenue ever shared among the three tiers of government,  federal, state, and local councils.

 

The revenue was shared at the FAAC meeting held in Abuja on Friday.

 

According to a communiqué issued by the Committee, the N2.001 trillion distributable revenue comprised:

 

N1,282.872 trillion statutory revenue,

 

N640.610 billion Value Added Tax (VAT),

 

N37.601 billion from the Electronic Money Transfer Levy (EMTL), and

 

N39.745 billion exchange difference.

 

 

The gross revenue available in July stood at N3.836 trillion, compared to N3.485 trillion in June, representing a drop of N415.108 billion in statutory inflows. VAT collections, however, rose marginally to N687.940 billion in July from N678.165 billion recorded in June.

 

Revenue Sharing Breakdown

 

From the N2.001 trillion distributable pool:

 

The Federal Government received N735.081 billion.

 

State Governments received N660.349 billion.

 

Local Government Councils got N485.039 billion.

 

Benefiting oil-producing states received N120.359 billion as 13% derivation revenue.

 

Further breakdown shows the Federal Government received N613.805 billion from statutory revenue, N96.092 billion from VAT, N5.640 billion from EMTL, and N19.544 billion from the exchange difference. States and local councils also received proportionate allocations.

 

The communiqué noted significant increases in Petroleum Profit Tax (PPT), Oil and Gas Royalties, Excise Duty, and EMTL, while Companies Income Tax (CIT) and CET levies recorded declines.

 

Since President Bola Ahmed Tinubu’s administration removed petrol subsidy in 2023, federal allocations have consistently risen. However, despite the surge in revenue inflows, many Nigerians continue to grapple with rising living costs and economic hardship.

 

President Tinubu, in July, urged governments at all levels to “water the ground at the grassroots” to ensure that Nigerians feel the impact of increased allocations.