By Abdul Lauya
The Federation Account Allocation Committee (FAAC) has shared a total of N2.001 trillion as July 2025 federation revenue to the three tiers of government.
The allocation was announced at the August 2025 FAAC meeting in Abuja, where the Federal Government, states, and local governments received their statutory shares.
The breakdown showed the Federal Government got N735.081 billion, states received N660.349 billion, and local government councils took N485.039 billion.
An additional N120.359 billion, representing 13% mineral derivation revenue, was shared to oil-producing states.
The distributable sum included N1.282 trillion from statutory revenue, N640.610 billion from Value Added Tax (VAT), N37.601 billion from Electronic Money Transfer Levy (EMTL), and N39.745 billion from exchange difference.
FAAC disclosed that gross revenue for July stood at N3.836 trillion, but deductions for collection costs and transfers gulped N1.836 trillion, leaving N2.001 trillion for sharing.
The July gross statutory revenue of N3.070 trillion fell by N415.108 billion compared to June’s N3.485 trillion, pointing to weakening oil and tax inflows.
Meanwhile, VAT collection improved slightly, rising to N687.940 billion in July from N678.165 billion in June.
Petroleum Profit Tax, Oil and Gas Royalties, EMTL, and Excise Duty all recorded significant increases during the month, signaling resilience from oil-related earnings.
However, Companies Income Tax (CIT) and Common External Tariff (CET) levies declined, reflecting sluggish business activities and weaker trade volumes.
The revenue performance highlights Nigeria’s continued reliance on oil and volatile tax streams, raising fresh concerns about the sustainability of public finance.
For ordinary Nigerians, the figures mean that while governments will have more cash to pay workers’ salaries and fund projects, persistent revenue volatility could limit investments in infrastructure, worsen inflationary pressures, and leave citizens vulnerable to economic shocks.
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