FG, States, LGs Share ₦2 Trillion FAAC Allocation for July

The Nigerian government has shared a total of ₦2.001 trillion among its three tiers—federal, state, and local councils. This was the July 2025 revenue from the Federation Account.

The allocation took place at the August 2025 FAAC meeting in Abuja. The funds came from four major sources: statutory revenue, VAT, EMTL, and exchange difference.

“Gross statutory revenue stood at ₦3.070 trillion in July, lower than June’s ₦3.485 trillion by ₦415.108 billion,” said Bawa Mokwa, spokesperson for the Office of the Accountant General.

From the ₦2.001 trillion distributable revenue, the Federal Government received ₦735.081 billion. States got ₦660.349 billion, while local councils received ₦485.039 billion.

Oil-producing states were also paid ₦120.359 billion as 13% derivation revenue.

Statutory revenue contributed ₦1.282 trillion. From this, the Federal Government took ₦613.805 billion, states received ₦311.330 billion, and local councils got ₦240.023 billion.

“₦117.714 billion was shared with oil-producing states as derivation from statutory revenue,” the communiqué stated.

VAT revenue for July was ₦640.610 billion. The Federal Government received ₦96.092 billion, states got ₦320.305 billion, and local councils received ₦224.214 billion.

From the ₦37.601 billion EMTL, the Federal Government got ₦5.640 billion, states received ₦18.801 billion, and local councils took ₦13.160 billion.

Exchange difference revenue of ₦39.745 billion was also shared. The Federal Government received ₦19.544 billion, states got ₦9.913 billion, and local councils received ₦7.643 billion.

“₦2.643 billion from the exchange difference was paid to oil-producing states as derivation,” the report added.

Revenue Trends and Sector Performance

In July, Petroleum Profit Tax, Oil and Gas Royalty, EMTL, and Excise Duty rose significantly. VAT and import duty increased slightly.

However, Companies Income Tax and CET levies dropped.

The total gross revenue for July was ₦3.836 trillion. Deductions for collection costs stood at ₦152.681 billion, while transfers, refunds, and savings amounted to ₦1.683 trillion.

In what ways did the removal of petrol subsidy and devaluation of Naira shore up Nigeria’s shareable revenue to a record high? Which segment of society is bearing the greater burden? And what fiscal reforms are necessary to make states self-sufficient with their internally generated revenue? Discuss.

In what ways did the removal of petrol subsidy and devaluation of Naira shore up Nigeria's shareable revenue to a record high? Which segment of society is bearing the greater burden? And what fiscal reforms are necessary to make states self-sufficient witx

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