The Federation Account Allocation Committee (FAAC) has disbursed a total 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 marks a 9.6 per cent increase, equivalent to N159 billion, compared to the N1.659 trillion shared in May 2025.
The upward trend in revenue allocation was confirmed in a press statement issued during the weekend by Bawa Mokwa, director of press and public relations at the Office of the Accountant General of the Federation (OAGF), following the July 2025 FAAC meeting held in Abuja.
According to the FAAC communiqué, the total distributable revenue for June 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 further revealed that the total gross revenue available for June stood at N4.232 trillion. From this, N162.786 billion was deducted as the cost of collection, while N2.251 trillion was earmarked for transfers, interventions, refunds, and savings.
Of the N1.818 trillion distributed, the federal government received the largest share at N645.383 billion. State governments collectively took home N607.417 billion, while local government councils received N444.853 billion. In addition, N120.759 billion was disbursed to oil-producing states as their 13 per cent derivation revenue, a constitutional provision to compensate communities for resource extraction.
A more detailed breakdown of the statutory revenue component (N1.018 trillion) shows the federal government receiving N474.455 billion, state governments N240.650 billion, and local governments N185.531 billion. From this segment, N118.256 billion was specifically allocated as derivation revenue to eligible states.
For the N631.507 billion generated from VAT, the federal government received N94.726 billion, the states N315.754 billion, and the local governments N221.027 billion.
The N29.165 billion raised through the 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 with the federal government taking N19.147 billion, states N9.712 billion, and local governments N7.487 billion. An additional N2.503 billion from this category was also paid as derivation revenue to mineral-producing states.
Furthermore, 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.
A key factor driving the increase in June’s distributable revenue was the robust performance of Companies Income Tax (CIT) and Petroleum Profit Tax (PPT). Both recorded significantly stronger collections during the period, providing a much-needed boost to the Federation Account. According to the communiqué, gross statutory revenue, which includes CIT and PPT, rose 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 experienced a decline, dropping to N678.165 billion in June, down by N64.655 billion from N742.820 billion in May. The OAGF attributes this decline to subdued consumption levels and lower import activities, indicating a possible moderation in consumer spending and international trade. Other taxes that saw considerable decreases included Oil and Gas Royalties, Import Duty, Excise Duty, and Common External Tariff (CET) Levies.
