|By Adejumo Adekunle-
…Federal, state, and local governments share N1.818 trillion in biggest disbursement of 2025
Nigeria’s three tiers of government have shared the highest monthly revenue so far in 2025, with N1.818 trillion disbursed from the Federation Account Allocation Committee (FAAC) for July.
This figure, released over the weekend by Bawa Mokwa, Director of Press and Public Relations at the Office of the Accountant General of the Federation (OAGF), marks a significant rise from the previous five months and underscores a surge in statutory revenue, despite a dip in VAT collections.
The July disbursement surpasses the N1.659 trillion shared in May and the N1.681 trillion allocated in April. March had recorded N1.578 trillion, February stood at N1.678 trillion, while January started the year with N1.703 trillion.
According to the communiqué issued after the FAAC meeting in Abuja, the total gross revenue available in June 2025 was N4.232 trillion. From this, deductions for the cost of collection reached N162.786 billion, while N2.251 trillion was set aside for statutory transfers, intervention funds, refunds, and savings.
The breakdown shows a major jump in statutory revenue, which stood at N3.485 trillion in June—an increase of N1.390 trillion over the N2.094 trillion received in May. However, gross VAT revenue dropped to N678.165 billion from N742.820 billion in May, representing a decline of N64.655 billion.
Of the N1.818 trillion distributable revenue for July:
-
The federal government received N645.383 billion
-
The 36 states got N607.417 billion
-
The 774 local government councils were allocated N444.853 billion
-
An additional N120.759 billion was shared among oil-producing states as 13% derivation revenue
From the N631.507 billion VAT revenue generated in June:
-
The federal government took N94.726 billion
-
State governments received N315.754 billion
-
Local governments got N221.027 billion
Regarding revenue from the Electronic Money Transfer Levy (EMTL) totaling N29.165 billion:
-
The federal share was N4.375 billion
-
States got N14.582 billion
-
Local governments received N10.208 billion
Revenue from exchange rate differentials also contributed N38.849 billion. From this:
-
The federal government received N19.147 billion
-
States got N9.712 billion
-
Local councils received N7.487 billion
Additionally, N2.503 billion was disbursed to states entitled to derivation revenue beyond the oil-producing ones.
This substantial inflow reflects improved performance in key revenue sources, excluding VAT, and strengthens fiscal capacity across all levels of government in the second half of the year.
