…VAT Revenue Records N9bn Increase
The Federation Account Allocation Committee (FAAC) has announced that a total of N2 trillion was distributed among the federal, state, and local governments for the month of July 2025.
The disclosure was made on Friday at the FAAC meeting held in Abuja, chaired by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun.
According to the statement signed by Muhammed Manga, Director of Information at the Ministry of Finance, the gross revenue for July stood at N3.83 trillion, out of which N2 trillion was shared among the three tiers of government.
Breakdown of Allocation
From the distributable pool, the federal government received N735.08 billion, the states got N660.34 billion, while local governments received N485.03 billion. Oil-producing states also received N120.35 billion as 13 percent derivation.
FAAC explained that N152.68 billion went for the cost of collection, while N1.68 trillion was set aside for transfers, interventions, and refunds.
VAT Revenue Grows
The committee further revealed that revenue from Value Added Tax (VAT) rose to N687.94 billion in July, up from N678.16 billion in June, reflecting a N9.77 billion increase.
After statutory deductions, N640.61 billion was distributed: the federal government received N96.09 billion, states got N320.31 billion, and local government councils received N224.21 billion.
Other Revenue Streams
Gross statutory revenue stood at N3.07 trillion, lower by N415.10 billion compared to June.
From the balance, the FG received N613.81 billion, states N311.33 billion, LGAs N240.02 billion, and derivation N117.71 billion.
From the Electronic Money Transfer Levy (EMTL) of N39.16 billion, FG got N5.64 billion, states N18.80 billion, and LGAs N13.16 billion.
From exchange difference proceeds of N39.74 billion, FG received N19.54 billion, states N9.91 billion, LGAs N7.64 billion, while oil-producing states got N2.64 billion.
FAAC noted that Petroleum Profit Tax, excise duty, oil royalties, and EMTL recorded significant increases, while company income tax (CIT) and CET levies declined.
Minister’s Remarks
In his opening remarks, Minister Wale Edun commended the committee for its transparency and efficiency in resource allocation.
He also noted that the ongoing economic reforms are beginning to yield positive results, assuring that the federal government remains committed to sustaining growth and development across the country.