The Federation Account Allocation Committee (FAAC) has announced the disbursement of N1.818 trillion to the three tiers of government as revenue allocation for the month of June 2025, drawn from a total gross inflow of N4.232 trillion.
This was disclosed at the July FAAC meeting presided over by the Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, who also led a moment of reflection on the passing of former President Muhammadu Buhari, describing it as a national loss that has cast a long shadow of grief across the country.
Despite the sober mood, the Committee continued its critical work to keep the federation’s finances in motion.
Director of Information and Public Relations, Mohammed Manga in a statement quoted Edun to have indicated that from the gross revenue pool, N645.383 billion was allocated to the Federal Government, N607.417 billion to State Governments, and N444.853 billion to Local Government Councils.
Oil-producing states received N120.759 billion as 13% derivation from mineral revenue.
The disbursement came from a blend of revenue sources, including Gross Statutory Revenue, Value Added Tax (VAT), Electronic Money Transfer Levy (EMTL), Exchange Gains, and a N100 billion augmentation sourced from Non-Mineral Revenue.
While VAT collections dipped this month to N678.165 billion—a drop of N64.655 billion from May’s figure—Statutory Revenue showed a strong rebound, rising to N3.385 trillion, up from N2.094 trillion in the previous month. This surge of N1.390 trillion provided a strong buffer for the month’s allocations.
After deductions for cost of collection and refunds, N631.507 billion in VAT revenue was distributed as follows:
Federal Government: N94.726 billion
States: N315.754 billion
LGs: N221.027 billion
From the Statutory Revenue of N3.385 trillion, after deducting N134.444 billion for collection and N2.231 trillion for transfers and refunds, the N1.018 trillion net balance was shared as:
Federal Government: N474.455 billion
States: N240.650 billion
LGs: N185.531 billion
Derivation (13% for Oil-Producing States): N118.256 billion
Additional breakdowns include:
EMTL Revenue of N30.380 billion:
FG: N4.375 billion
States: N14.582 billion
LGs: N10.208 billion
Collection Cost: N1.215 billion
Exchange Difference of N38.849 billion:
FG: N19.147 billion
States: N9.712 billion
LGs: N7.487 billion
Derivation: N2.503 billion
Non-Mineral Revenue Augmentation of N100 billion:
FG: N52.680 billion
States: N26.720 billion
LGs: N20.600 billion
The FAAC Communique highlighted that while Companies Income Tax (CIT), Petroleum Profit Tax (PPT), and EMTL recorded substantial increases, there were notable declines in VAT, Oil and Gas Royalties, Import Duty, Excise Duty, and CET Levies.
The final distributable revenue for June 2025 came from:
Statutory Revenue: N1.018 trillion
VAT: N631.507 billion
EMTL: N29.165 billion
Non-Mineral Augmentation: N100 billion
Exchange Gains: N38.849 billion
Total: N1.818 trillion
Mr. Wale Edun, in his address, urged all stakeholders to continue aligning their work with the fiscal reform priorities of President Bola Ahmed Tinubu’s administration.
He praised the FAAC’s diligence in navigating the country’s revenue challenges while promoting accountability and transparency in allocations.