FAAC: FG, states, LGAs shared N2trn in July | VAT revenue increased by N9bn

FAAC July 2025 Allocations: ₦2 Trillion Shared

In July 2025, the Federation Account Allocation Committee (FAAC) distributed ₦2.001 trillion among federal, state, and local governments marking the first time this mark was hit. 

The total gross revenue available in July 2025 was ₦3.83698 trillion, comprising several revenue streams:

Gross statutory revenue: ₦3.070127 trillion (a drop of ₦415.108 billion from June 2025) 

Gross VAT revenue: ₦687.94 billion (up by ₦9.775 billion from ₦678.165 billion in June 2025) 

After deductions (e.g., cost of collection and interventions), the distributable amounts were broken down as follows:

Statutory revenue (₦1.283 trillion):

Federal Government: ₦613.805 billion

State Governments: ₦311.330 billion

Local Government Councils (LGCs): ₦240.023 billion

Derivation (13% mineral): ₦117.714 billion 

VAT revenue (₦640.610 billion):

Federal Government: ₦96.092 billion

States: ₦320.305 billion

Local Governments: ₦224.214 billion 

EMTL (Electronic Money Transfer Levy, ₦37.601 billion):

Federal: ₦5.640 billion

States: ₦18.801 billion

Local Governments: ₦13.160 billion 

Exchange Difference (₦39.745 billion):

Federal: ₦19.544 billion

States: ₦9.913 billion

Local Governments: ₦7.643 billion

Derivation: ₦2.643 billion 

VAT Revenue Trending Up

July’s gross VAT revenue rose to ₦687.94 billion, up approximately ₦9.8 billion from June’s figure of ₦678.165 billion a solid incremental increase. 

Summary 

Total distributable FAAC allocation ₦2.001 trillion

Increase in VAT revenue (July vs June) ₦9.775 billion

Incremental allocations to FG/States/LGAs via VAT increase Reflected in higher gross VAT pool

In a nutshell: July 2025 was a milestone month with a record ₦2.001 trillion in FAAC disbursements. A notable uplift in VAT revenue (up by ₦9.8 billion) in July helped boost the distributable pool across all tiers of governance.