FAAC Shares ₦2.001tn July Allocation To FG, States, LGs As Statutory Inflows Dip

The three tiers of government—Federal, State and Local Government Councils—have shared ₦2.001 trillion as July 2025 Federation Account revenue.

The allocation was finalised at the August 2025 Federation Account Allocation Committee (FAAC) meeting in Abuja.

A communiqué issued by the spokesperson for the Office of the Accountant-General of the Federation, Bawa Mokwa, explained that the July gross statutory revenue came in at ₦3.070 trillion, a decline of ₦415.108 billion when set against the ₦3.485 trillion recorded in June.

In contrast, gross Value Added Tax (VAT) receipts posted a mild improvement, rising to ₦687.940 billion in July from ₦678.165 billion in June.

What was shared and who got what:

The total distributable pool for July stood at ₦2.000828 trillion (hereafter rounded as ₦2.001 trillion).

From this sum, the Federal Government received ₦735.081 billion, State Governments collectively received ₦660.349 billion, while Local Government Councils got ₦485.039 billion.

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In addition, oil-producing states were allotted ₦120.359 billion as 13% derivation from mineral revenues.

How the distributable pool was built:

According to the communiqué, the ₦2.001 trillion distributable revenue was drawn from four streams: ₦1.282 trillion in distributable statutory revenue; ₦640.610 billion from Value Added Tax (VAT); ₦37.601 billion from the Electronic Money Transfer Levy (EMTL); and ₦39.745 billion as exchange difference.

Within the ₦1.282 trillion statutory component, the Federal Government got ₦613.805 billion, states received ₦311.330 billion, local councils took ₦240.023 billion, while ₦117.714 billion was carved out as the 13% derivation to benefiting states.

From the ₦640.610 billion VAT shareable figure, the Federal Government received ₦96.092 billion, states ₦320.305 billion, and local councils ₦224.214 billion. For the ₦37.601 billion EMTL, the Federal Government’s share was ₦5.640 billion, states received ₦18.801 billion, and councils ₦13.160 billion.

The ₦39.745 billion exchange difference was distributed as follows: Federal Government ₦19.544 billion; states ₦9.913 billion; local councils ₦7.643 billion; and ₦2.643 billion as 13% derivation to oil-producing states.

Trend watch: taxes and duties that moved the needle:

FAAC reported that July collections saw significant increases in Petroleum Profit Tax (PPT), Oil and Gas Royalty, Electronic Money Transfer Levy (EMTL) and Excise Duty.

Value Added Tax (VAT) and Import Duty recorded marginal increases, while Companies Income Tax (CIT) and Common External Tariff (CET) levies declined.

The bottom line:

While the distributable pool held at ₦2.001 trillion, pressure from a softer statutory inflow (down ₦415.108 billion month-on-month) was partly cushioned by firmer VAT and better outturns from PPT, royalties, EMTL and excise.

States and councils will nonetheless be watching statutory receipts closely in the coming months, given their outsized role in funding recurrent obligations and capital projects.