FAAC: FG, states, LGAs shared N2trn in July | VAT revenue increased by N9bn

The Federation Account Allocation Committee (FAAC) says it shared N2 trillion with the three tiers of government in July 2025.

According to a statement on Friday by Muhammed Manga, director of information and public relations, ministry of finance, the amount was disclosed at the August 2025 meeting.

The meeting was chaired by Wale Edun, minister of finance and coordinating minister of the economy.

The committee said the gross total  revenue was N3.83 trillion, out of which N2 trillion was shared among the three tiers.

From the total amount, which includes statutory revenue, value-added tax (VAT), electronic money transfer levy (EMT), and exchange difference, Manga said  the federal government received N735.08 billion, states received N660.34 billion, and local governments got N485.03 billion.

Also, the oil producing states received N120.35 billion as derivation, (13 percent of mineral revenue).

FAAC said N152.68 billion was given for the cost of collection, while N1.68 trillion was allocated for transfers, intervention and refunds.

VAT REVENUE INCREASED BY N9BN

The communique also indicated that the gross revenue available from the VAT for the month of July 2025 was N687.94 billion as against N678.16 billion in June, representing an increase of N9.77 billion.

“From that amount, the sum of N27.51 billion was allocated for the cost of collection and the sum of N19.81 billion given for Transfers, Intervention and Refunds,” the statement reads.

“The remaining sum of N640.61 billion was distributed  to the three tiers of government, of which the federal government got N96.09 billion, the States received N320.305 Billion and local government Councils got N224.21 billion.”

FAAC said gross statutory revenue of N3.07 trillion received for the month was lower than the N3.48 trillion received in the previous month by N415.10 billion .

From the stated amount, the sum of N123.59 billion was allocated for the cost of collection and N1.66 trillion for transfers, intervention and refunds.

“The remaining  balance of  N1.28 trillion was distributed as follows to the three tiers of government: Federal Government got the sum of N613.805 Billion, States received N311.330 Billion, the sum of N240.023 Billion was allocated to LGCs and N117.714 Billion was given to Derivation Revenue (13% Mineral producing States),” FAAC said.

For EMTL, the committe said out of N39.16 billion, the federal government received N5.64 billion, states got N18.80 billion, local governments received N13.16 billion, while N1.56 billion was allocated for cost of collection.

The Communique added that out of N39.74 billion from exchange difference, the federal government got N19.54 billion, states received N9.91 billion, the LGAs got N7.64 billion, while the oil producing states received N2.64 billion.

In addition, FAAC said petroleum profit tax (PPT), excise duty, electronic money transfer levy (EMTL), and oil and royalties increased significantly, while VAT and import duty increased marginally.

The committee added that company income tax (CIT) and CET levies decreased.

According to the communique, the total revenue distributable for July 2025, was drawn from statutory revenue of N1.28 trillion, VAT of N640.61 billion, N37.60 billion from EMTL, and N39.74 billion from exchange difference, bringing the total distributable amount for the month to N2 trillion.

In his opening remarks during the meeting, Edun, commended the FAAC committee for their diligent efforts in ensuring the effective allocation of resources to the various tiers of government.

The minister noted that the economic reforms embarked upon by the federal government are yielding positive results and the collective efforts will continue to drive growth and development.