The Federal Ministry of Finance has announced that 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, approved the distribution of a total of N2.001 trillion to the three tiers of government from a gross revenue of N3.836 trillion generated in July 2025.
According to a communiqué issued at the end of the meeting in Abuja, the amount shared comprised Gross Statutory Revenue, Value Added Tax (VAT), Electronic Money Transfer Levy (EMTL), and Exchange Difference.
Breakdown of Allocation
Federal Government: N735.081 billion
State Governments: N660.349 billion
Local Government Councils: N485.039 billion
Oil-Producing States (13% Derivation): N120.359 billion
Additionally, N152.681 billion was earmarked for the cost of revenue collection, while N1.683 trillion was set aside for Transfers, Intervention, and Refunds.
VAT Revenue Rises by N9.7 Billion
The communiqué disclosed that revenue from Value Added Tax (VAT) for July 2025 stood at N687.940 billion, reflecting an increase of N9.775 billion compared to N678.165 billion recorded in June.
From this, N27.517 billion was deducted as the cost of collection, while N19.813 billion was allocated for Transfers, Intervention, and Refunds. The balance of N640.610 billion was shared as follows:
Federal Government: N96.092 billion
States: N320.305 billion
Local Government Councils: N224.214 billion
Statutory Revenue Declines
The gross statutory revenue for July was N3.070 trillion, which was N415.108 billion lower than the N3.485 trillion received in June 2025.
After deductions of N123.597 billion for the cost of collection and N1.663 trillion for Transfers, Intervention, and Refunds, a balance of N1.282 trillion was distributed:
Federal Government: N613.805 billion
States: N311.330 billion
Local Government Councils: N240.023 billion
Oil-Producing States (Derivation): N117.714 billion
EMTL and Exchange Difference
The FAAC also shared N39.168 billion from Electronic Money Transfer Levy (EMTL):
Federal Government: N5.640 billion
States: N18.801 billion
Local Government Councils: N13.160 billion
Cost of Collection: N1.567 billion
Similarly, N39.745 billion from Exchange Difference was distributed as follows:
Federal Government: N19.544 billion
States: N9.913 billion
Local Government Councils: N7.643 billion
Oil-Producing States: N2.645 billion
Revenue Performance
The communiqué highlighted that Petroleum Profit Tax (PPT), Excise Duty, EMTL, and Oil and Gas Royalty recorded significant increases, while VAT and Import Duty rose marginally. However, Company Income Tax (CIT) and CET Levies declined.
Total Distributable Revenue
For July 2025, the total distributable revenue amounted to N2.001 trillion, made up of:
Statutory Revenue: N1.282 trillion
VAT: N640.610 billion
EMTL: N37.601 billion
Exchange Difference: N39.745 billion
This distribution reaffirms the government’s ongoing commitment to fiscal federalism and equitable revenue sharing among the three tiers of government.
Signed:
Mohammed Manga, FCIA
Director, Information and Public Relations
Federal Ministry of Finance
August 22, 2025
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