The Federation Account Allocation Committee (FAAC) at its August 2025 meeting disbursed a total of N2.001 trillion Naira ($1.314 billion) to the country’s three tiers of government. The funds, which represent the Federation Allocation for the month of July 2025, were shared from a gross total of N3.836 trillion ($2.519 billion).
The August meeting, presided over by the Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, saw a detailed breakdown of the distribution, which included revenue from Gross Statutory Revenue, Value Added Tax (VAT), Electronic Money Transfer Levy (EMTL), and Exchange Difference.
According to a report released by FAAC, the distribution was as follows:
- Federal Government: N735.081 billion ($482.88 million)
- States: N660.349 billion ($433.74 million)
- Local Government Councils: N485.039 billion ($318.66 million)
- Oil Producing States (13% Derivation): N120.359 billion ($79.06 million)
The report also noted that the sum of N152.681 billion ($100.29 million) was allocated for the cost of collection, while N1.683 trillion ($1.105 billion) was set aside for transfers, intervention, and refunds.
Revenue Streams and Performance.
A closer look at the different revenue streams reveals varying performance for the month of July.
Value Added Tax (VAT): The gross revenue from VAT showed a marginal increase, rising to N687.940 billion ($451.87 million) from N678.165 billion ($445.47 million) in the preceding month, a difference of N9.775 billion ($6.42 million).
After deductions for the cost of collection (N27.517 billion or $18.07 million) and transfers/interventions/refunds (N19.813 billion or $13.01 million), a distributable sum of N640.610 billion ($420.79 million) was shared.
The breakdown of this distributable VAT revenue is:
- Federal Government: N96.092 billion ($63.12 million)
- States: N320.305 billion ($210.39 million)
- Local Government Councils: N224.214 billion ($147.25 million)
The Gross Statutory Revenue for July 2025 was N3.070 trillion ($2.016 billion), which was lower than the N3.485 trillion ($2.288 billion) received in June 2025 by N415.108 billion ($272.63 million).
From this amount, N123.597 billion ($81.18 million) was allocated for the cost of collection and N1.663 trillion ($1.092 billion) for transfers, intervention, and refunds. The remaining distributable balance of N1.282 trillion ($841.97 million) was shared as follows:
- Federal Government: N613.805 billion ($403.18 million)
- States: N311.330 billion ($204.49 million)
- Local Government Councils: N240.023 billion ($157.70 million)
- Derivation Revenue (13% Mineral Producing States): N117.714 billion ($77.29 million)
Electronic Money Transfer Levy (EMTL)
A total of N39.168 billion ($25.72 million) was generated from the EMTL. After a cost of collection deduction of N1.567 billion ($1.03 million), the distributable sum of N37.601 billion ($24.69 million) was shared among the three tiers of government.
- Federal Government: N5.640 billion ($3.70 million)
- States: N18.801 billion ($12.35 million)
- Local Government Councils: N13.160 billion ($8.64 million)
Exchange Difference
The sum of N39.745 billion ($26.10 million) from Exchange Difference was also distributed, with the following breakdown:
- Federal Government: N19.544 billion ($12.84 million)
- States: N9.913 billion ($6.51 million)
- Local Government Councils: N7.643 billion ($5.02 million)
- Oil Producing States: N2.645 billion ($1.74 million)
However, the total distributable revenue of N2.001 trillion ($1.314 billion) for July 2025 was a combination of N1.282 trillion ($841.97 million) from Statutory Revenue, N640.610 billion ($420.79 million) from VAT, N37.601 billion ($24.69 million) from EMTL, and N39.745 billion ($26.10 million) from Exchange Difference.
Note: The conversions are based on an exchange rate of N1,522.43 to $1 #####
