FG, States, LGs Share N2trn from July Federation Allocation

FG, States, LGs Share N2trn from July Federation Allocation

JOEL OLADELE, Abuja

The Federation Account Allocation Committee (FAAC) has shared a total of N2.001 trillion among the Federal Government, states, and local government councils for July 2025.

The allocation was announced at FAAC’s August meeting chaired by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, following a gross revenue inflow of N3.836 trillion.

From the distributable sum, the Federal Government received N735.081 billion, the states got N660.349 billion, while the 774 local government councils shared N485.039 billion. Oil-producing states also received N120.359 billion as 13 percent derivation.

A further N152.681 billion was set aside for collection costs, while N1.683 trillion was earmarked for transfers, interventions, and refunds.

According to the FAAC communiqué, gross statutory revenue for July stood at N3.070 trillion, lower by N415.108 billion compared to the previous month’s N3.485 trillion.

Out of this, N1.282 trillion was distributable, with the Federal Government taking N613.805 billion, states receiving N311.330 billion, local governments N240.023 billion, and oil-producing states N117.714 billion.

For Value Added Tax (VAT), revenue rose slightly to N687.940 billion in July, up from N678.165 billion in June. After statutory deductions, N640.610 billion was shared, with the Federal Government receiving N96.092 billion, states N320.305 billion, and councils N224.214 billion.

Electronic Money Transfer Levy (EMTL) contributed N39.168 billion, distributed as follows: Federal Government, N5.640 billion; states, N18.801 billion; and councils, N13.160 billion. From exchange differences of N39.745 billion, the Federal Government received N19.544 billion, states N9.913 billion, councils N7.643 billion, and oil-producing states N2.645 billion.

The communiqué further noted significant increases in Petroleum Profit Tax (PPT), excise duty, EMTL, and oil and gas royalties, while company income tax and CET levies recorded declines.

Speaking at the meeting, the Finance Minister, Mr. Edun, commended the FAAC members for their “diligent efforts in ensuring the effective allocation of resources to the various tiers of government.”

He stressed that ongoing reforms are beginning to yield results.
“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. Better days are ahead, and I am optimistic about the future of our economy,” Edun emphasized.