The Federation Account Allocation Committee (FAAC) has distributed a total sum of N1.818 trillion to the Federal Government, State Governments, and Local Government Councils as Federation Account revenue for the month of June 2025.
This represents a 9.6% increase—equivalent to N159 billion—when compared to the N1.659 trillion shared in May 2025.
This was disclosed in a press statement issued on Saturday by Bawa Mokwa, Director of Press and Public Relations at the Office of the Accountant General of the Federation (OAGF).
The allocation followed the July 2025 FAAC meeting held in Abuja, where government officials reviewed revenue inflows and approved disbursements to the three tiers of government.
According to the FAAC communiqué, the total distributable revenue of N1.818 trillion comprised N1.018 trillion from statutory revenue, N631.507 billion from Value Added Tax (VAT), N29.165 billion from the Electronic Money Transfer Levy (EMTL), N38.849 billion as Exchange Difference revenue, and an additional N100 billion augmentation sourced from non-mineral revenue.
The document also revealed that the total gross revenue available for June stood at N4.232 trillion. From this, N162.786 billion was deducted as cost of collection, while N2.251 trillion was earmarked for transfers, interventions, refunds, and savings.
FG get N645 billion, States N607 billion as derivation hits N120 billion
Out of the N1.818 trillion distributed, the Federal Government received N645.383 billion, while State Governments shared N607.417 billion. Local Government Councils received N444.853 billion, and an additional N120.759 billion was disbursed to oil-producing states as 13% derivation revenue.
- Further breakdown shows that from the N1.018 trillion statutory revenue component, the Federal Government received N474.455 billion, State Governments received N240.650 billion, and Local Governments got N185.531 billion. From this segment, N118.256 billion was allocated as derivation revenue to eligible states.
- For the N631.507 billion VAT revenue, the Federal Government received N94.726 billion, the States N315.754 billion, and the Local Governments N221.027 billion. Meanwhile, the N29.165 billion raised through EMTL was shared with the Federal Government receiving N4.375 billion, State Governments N14.582 billion, and Local Governments N10.208 billion.
- The Exchange Difference revenue of N38.849 billion was distributed as follows: Federal Government N19.147 billion, States N9.712 billion, and Local Governments N7.487 billion. In addition, N2.503 billion from this category was paid as derivation revenue to mineral-producing states.
The N100 billion augmentation from non-mineral revenue was split, with the Federal Government receiving N52.680 billion, State Governments N26.720 billion, and Local Governments N20.600 billion.
CIT and PPT bolster federation revenue despite dip in VAT
A key factor behind the rise in June’s distributable revenue was the significant increase in Companies Income Tax (CIT) and Petroleum Profit Tax (PPT), both of which recorded stronger collections during the period. According to the communiqué, gross statutory revenue rose sharply to N3.485 trillion in June from N2.094 trillion in May—an increase of N1.390 trillion.
However, not all revenue components performed positively. Gross VAT collections dropped to N678.165 billion in June, down by N64.655 billion from N742.820 billion in May. The decline reflects subdued consumption levels and lower import activities. Other taxes that saw considerable decreases included Oil and Gas Royalties, Import Duty, Excise Duty, and CET Levies.
While the growth in CIT and PPT revenues provided a much-needed boost to the Federation Account, the fluctuation in VAT and trade-based collections signals continued pressure on consumer demand and international trade, two key contributors to Nigeria’s non-oil revenue base.
