Federal Government, State Governments and Local Government Councils have shared ₦2.00 Trillion from a gross total of ₦3.83 Trillion for the month of July 2025.
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The information was contained in a press released signed by Mohammed Manag FCIA, Director, Information and Public Relations of the Federal Ministry of Finance on Friday.
The Federation Account Allocation Committee (FAAC), at its August 2025 meeting chaired by the Honourable Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, shared a total sum of ₦2.00 Trillion to the three tiers of government as Federation Allocation for the month of July 2025 from a gross total of ₦3.83 Trillion.
From the stated amount inclusive of Gross Statutory Revenue, Value Added Tax (VAT), Electronic Money Transfer Levy (EMTL), and Exchange Difference, the Federal Government received ₦735.08 Billion, the States received ₦660.34 Billion, the Local Government Councils got ₦485.03 Billion, while the Oil Producing States received ₦120.35 Billion as Derivation, (13% of Mineral Revenue).
The sum of ₦152.68 Billion was given for the cost of collection, while ₦1.68 Trillion was allocated for Transfers Intervention and Refunds.
The Communique issued by the Federation Account Allocation Committee (FAAC) at the end of the meeting indicated that the Gross Revenue available from the Value Added Tax (VAT) for the month of July 2025, was ₦687.94 Billion as against ₦678.16 Billion distributed in the preceding month, resulting in an increase of ₦9.77 Billion.
From that amount, the sum of ₦27.51 Billion was allocated for the cost of collection and the sum of ₦19.81 Billion given for Transfers, Intervention and Refunds. The remaining sum of ₦640.61 Billion was distributed to the three tiers of government, of which the Federal Government got ₦96.09 Billion, the States received ₦320.30 Billion and Local Government Councils got ₦224.21 Billion.
Accordingly, the Gross Statutory Revenue of ₦3.07 Trillion received for the month was lower than the sum of ₦3.48 Trillion received in the previous month by ₦415.10 Billion.
From the stated amount, the sum of ₦123.59 Billion was allocated for the cost of collection and a total sum of ₦1.66 Trillion for Transfers, Intervention and Refunds.
The remaining balance of ₦1.28 Trillion was distributed as follows to the three tiers of government: Federal Government got the sum of ₦613.805 Billion, States received ₦311.33 Billion, the sum of ₦240.02 Billion was allocated to LGCs and ₦117.71 Billion was given to Derivation Revenue (13% Mineral producing States).
Also, the sum of ₦39.16 Billion from Electronic Money Transfer Levy (EMTL) was distributed to the three (3) tiers of government as follows: the Federal Government received ₦5.64 Billion, States got ₦18.80 Billion, Local Government Councils received ₦13.16 Billion, while ₦1.56 Billion was allocated for Cost of Collection.
The Communique also mentioned the sum of ₦39.74 Billion from Exchange Difference which was distributed to the three tiers of Government as follows: Federal government got ₦19.54 Billion, the State received ₦9.91 Billion, the LGCs got ₦7.64 Billion, while the Oil producing States received ₦2.64 Billion.
Petroleum Profit Tax (PPT), Excise Duty, Electronic Money Transfer Levy (EMTL), and Oil and Gas Royalty increased significantly, while Value Added Tax (VAT) and Import Duty increased marginally. Company Income Tax (CIT) and CET Levies recorded decreases.
According to the Communique, the total revenue distributable for the current month of July 2025, was drawn from Statutory Revenue of ₦1.28 Trillion, Value Added Tax (VAT) of ₦640.61 Billion, ₦37.60 Billion from Electronic Money Transfer Levy (EMTL), and the sum of ₦39.74 Billion from Exchange Difference, bringing the total distributable amount for the month to ₦2.00 Trillion.
Earlier, in his opening remarks, the Honourable Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, commended the FAAC Committee for their diligent efforts in ensuring the effective allocation of resources to the various tiers of government.
He noted that the economic reforms embarked upon by the Federal Government are yielding positive results and that our collective efforts will continue to drive growth and development.
The Minister assured that better days are ahead and expressed optimism about the future of our economy. As we continue to work together, I urge us to prioritize prudent management of public resources, ensuring that our nation’s wealth is utilized effectively to meet the needs of our citizens, Edun emphasized.
Nnamdi Maduakor is a Writer, Investor and Entrepreneur
