By Abdallah el-KurebeThe Federation Account Allocation Committee (FAAC) shared a total of ₦2.001 trillion in revenue for July 2025 among the Federal Government, states, and local government councils. This represents a decline from the ₦2.152 trillion distributed in June 2025.Distribution/ breakdownThe distributable revenue of ₦2.001 trillion for July was made up of:₦1.282 trillion from statutory allocations₦640.610 billion from Value Added Tax (VAT)₦37.601 billion from the Electronic Money Transfer Levy (EMTL)₦39.745 billion from exchange rate differencesAllocations to the three tiers of governmentFederal government: ₦735.081 billionState governments: ₦660.349 billionLocal government councils: ₦485.039 billion13% Derivation Fund (oil-producing states): ₦120.359 billionBreakdown by revenue componentStatutory Revenue (₦1.282 trillion)Federal government: ₦613.805 billionStates: ₦311.330 billionLocal councils: ₦240.023 billionDerivation: ₦117.714 billionVAT (₦640.610 billion)Federal government: ₦96.092 billionStates: ₦320.305 billionLocal councils: ₦224.214 billionEMTL (₦37.601 billion)Federal government: ₦5.640 billionStates: ₦18.801 billionLocal councils: ₦13.160 billionExchange difference (₦39.745 billion)Federal government: ₦19.544 billionStates: ₦9.913 billionLocal councils: ₦7.643 billionDerivation: ₦2.643 billionRevenue performance: July vs June 2025Total distributable revenue: ₦2.001 trillion (July) vs ₦2.152 trillion (June) → ₦151 billion decreaseStatutory revenue: ₦1.282 trillion (July) vs ₦1.451 trillion (June) → ₦169 billion decreaseVAT: ₦640.610 billion (July) vs ₦630.566 billion (June) → ₦10 billion increaseEMTL: ₦37.601 billion (July) vs ₦38.206 billion (June) → ₦605 million decreaseExchange difference: ₦39.745 billion (July) vs ₦31.234 billion (June) → ₦8.511 billion increaseSummaryThe July 2025 FAAC allocation is a drop of over ₦151 billion compared to June, largely due to a fall in statutory revenue. However, slight gains were recorded in VAT collections and exchange rate adjustments, which provided some balance. The Federal Government, states, and local governments are expected to adjust their expenditure planning to reflect this revenue decline.
