By Abdul Lauya
The Federation Account Allocation Committee (FAAC) has disbursed a total sum of N1.818 trillion among the three tiers of government as revenue generated in June 2025.
The announcement followed the July 2025 FAAC meeting held in Abuja and was confirmed by the Office of the Accountant General of the Federation.
According to the official communiqué, the disbursed amount represents the combined allocation to the Federal Government, State Governments, and Local Government Councils.
The figure is reflective of the federation’s gross statutory revenue inflow of N3.485 trillion for June, marking a significant rise of N1.390 trillion when compared to the N2.094 trillion recorded in May 2025.
Despite the notable growth in statutory revenue, a contrasting trend was observed in Value Added Tax (VAT) receipts, which dropped from N742.820 billion in May to N678.165 billion in June, representing a shortfall of N64.655 billion.
Analysts say this decline could signal weakening consumer demand or reduced economic activity in the non-oil sector.
The communiqué also revealed sharp increases in Companies Income Tax (CIT), Petroleum Profit Tax (PPT), and Electronic Money Transfer Levy (EMTL), revenue lines often associated with corporate earnings and digital transactions.
This suggests improved performance in the formal sector and continued growth in financial technology adoption.
Conversely, the report highlighted worrying declines in earnings from Oil and Gas Royalty, Import and Excise Duties, CET Levies, and VAT.
These decreases may reflect ongoing challenges in Nigeria’s upstream oil sector, import dependency pressures, and reduced cross-border trade efficiency.
As Nigeria continues to navigate fiscal pressures amid volatile oil prices and subsidy reforms, the mixed revenue trajectory could pose sustainability concerns for state and local government budgeting, especially those heavily reliant on monthly FAAC inflows.
