Record Payout: FG, States, LGs Share N1.818tn Revenue

0
72

The Federation Account Allocation Committee (FAAC) has confirmed that Nigeria’s federal, state, and local governments shared N1.818 trillion in July 2025, marking the highest monthly revenue distribution so far this year. The announcement was contained in a communiqué issued after the FAAC meeting held in Abuja and released by Bawa Mokwa, Director of Press and Public Relations at the Office of the Accountant General of the Federation (OAGF).

The July allocation surpasses figures from previous months, with May recording N1.659 trillion, April N1.681 trillion, March N1.578 trillion, February N1.678 trillion, and January N1.703 trillion. The increase is attributed to improved statutory revenue inflows and foreign exchange gains.


According to FAAC’s report, the total gross revenue for June 2025 stood at N4.232 trillion. Of this amount, N162.786 billion was deducted as the cost of revenue collection, while N2.251 trillion was earmarked for transfers, interventions, refunds, and savings.

Statutory revenue: N3.485 trillion (up from N2.094 trillion in May, an increase of N1.390 trillion).

Value Added Tax (VAT): N678.165 billion (down from N742.820 billion in May, a decrease of N64.655 billion).

Electronic Money Transfer Levy (EMTL): N29.165 billion.

Exchange difference revenue: N38.849 billion.


From the distributable N1.818 trillion, the federal government received N645.383 billion, the state governments N607.417 billion, and the local governments N444.853 billion. Additionally, N120.759 billion was allocated to oil-producing states under the 13% derivation principle.

For VAT distribution, the federal government got N94.726 billion, states received N315.754 billion, and local governments N221.027 billion. From the EMTL, the federal government received N4.375 billion, states N14.582 billion, and local councils N10.208 billion. Furthermore, N2.503 billion was distributed to derivation-eligible states from the exchange difference.

Analysts say the record FAAC disbursement could help cash-strapped state and local governments settle wage bills, finance infrastructure, and fund palliative measures amidst inflationary pressures. However, concerns remain about fiscal discipline, as many states struggle with rising debt profiles and recurrent expenditure overruns.

A Lagos-based economic analyst, Dr. Chuka Eze, told our correspondent that the surge in statutory revenue, largely driven by higher oil receipts and exchange rate gains, provides an opportunity for states to invest in productive sectors.

“This windfall should be channelled into infrastructure, education, and healthcare rather than political spending. If well managed, the current FAAC surplus can help ease inflationary pressures and reduce unemployment,” Eze said.



Civil society groups have urged governments at all levels to publish detailed expenditure reports to ensure accountability. The Socio-Economic Rights and Accountability Project (SERAP) recently called for greater transparency in FAAC allocations, arguing that the huge disbursements must translate to improved public services.

Similarly, financial experts have reiterated the need for fiscal reforms, stressing that overdependence on FAAC allocation remains unsustainable for state economies.

The spike in statutory revenue has been linked to improved oil production and foreign exchange reforms introduced by the federal government, which boosted oil receipts in naira terms. In June, Brent crude averaged $86 per barrel, while the naira’s adjustment under the managed float system improved forex inflows to the federation account.

The July disbursement also reflects ongoing efforts by the Federal Inland Revenue Service (FIRS) to improve tax collection efficiency, although VAT receipts declined due to reduced consumer spending.


With July’s N1.818 trillion marking a new record, expectations are high that the federal, state, and local governments will deploy the funds to address critical development challenges. However, experts warn that without prudent fiscal management, the historic revenue increase may fail to significantly improve Nigerians’ living standards.

Leave a Reply