…VAT rises by ₦9bn, statutory revenue drops by ₦415bn
The Federation Account Allocation Committee (FAAC) on Friday said it disbursed a total of ₦2 trillion to the federal, state and local governments for July 2025.
The allocation followed the committee’s monthly meeting in Abuja, chaired by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun.
According to a communiqué issued by the Ministry of Finance’s Director of Information, Muhammed Manga, the shared funds were drawn from statutory revenue, Value Added Tax (VAT), the Electronic Money Transfer Levy (EMTL), and exchange difference.
From the disbursement, the federal government received ₦735.08 billion, states got ₦660.34 billion, while local governments shared ₦485.03 billion. Oil-producing states received ₦120.35 billion as 13 percent derivation.
FAAC further disclosed that ₦152.68 billion went to the cost of collection, while ₦1.68 trillion was set aside for transfers, interventions and refunds.
The communiqué revealed that VAT revenue for July stood at ₦687.94 billion, an increase of ₦9.77 billion compared to June’s ₦678.16 billion.
After statutory deductions, ₦640.61 billion was distributed to the three tiers of government — federal (₦96.09 billion), states (₦320.31 billion), and local governments (₦224.21 billion).
FAAC reported a decline in statutory revenue, with ₦3.07 trillion collected in July compared to ₦3.48 trillion in June, representing a ₦415.1 billion shortfall.
From the distributable balance of ₦1.28 trillion, the federal government received ₦613.81 billion, states got ₦311.33 billion, local governments ₦240.02 billion, while derivation revenue to oil-producing states stood at ₦117.71 billion.
For the Electronic Money Transfer Levy (EMTL), out of ₦39.16 billion collected, the federal government received ₦5.64 billion, states ₦18.80 billion, and local councils ₦13.16 billion.
On exchange difference revenue of ₦39.74 billion, the federal government got ₦19.54 billion, states ₦9.91 billion, local governments ₦7.64 billion, while oil-producing states received ₦2.64 billion.
FAAC noted significant increases in petroleum profit tax, excise duty, EMTL and oil royalties, while VAT and import duty recorded marginal growth. However, company income tax (CIT) and CET levies witnessed a decline.
Minister Edun commended the committee for its “diligent efforts” in resource distribution, stressing that the government’s economic reforms are beginning to yield results.
“These collective efforts will continue to drive growth and development across all tiers of government,” Edun assured.
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