Nigeria's FAAC Distributes Record N1.818 Trillion for June 2025 Revenue
The Federation Account Allocation Committee (FAAC) concluded its July 2025 meeting with the distribution of N1.818 trillion as the Federation Account Revenue for the month of June 2025. This significant disbursement to the Federal Government, State Governments, and Local Government Councils represents the highest monthly allocation recorded so far this year, underscoring a notable increase in the nation's revenue streams.
Detailed Breakdown of June 2025 FAAC Allocation:
I. Total Distributable Revenue: N1.818 Trillion
This record-high distributable revenue is composed of the following key elements:
Statutory Revenue: N1.018 trillion
Value Added Tax (VAT) Revenue: N631.507 billion
Electronic Money Transfer Levy (EMTL) Revenue: N29.165 billion
Exchange Difference Revenue: N38.849 billion
Augmentation from Non-Mineral Revenue: N100 billion
II. Gross Revenue and Deductions:
A total gross revenue of N4.232 trillion was generated and made available in June 2025.
N162.786 billion was deducted to cover the cost of revenue collection.
N2.251 trillion was set aside for various transfers, interventions, refunds, and national savings.
III. Allocation to Tiers of Government:
From the N1.818 trillion total distributable revenue, the allocations were as follows:
Federal Government: Received a total sum of N645.383 billion
State Governments: Received a total sum of N607.417 billion
Local Government Councils: Received a total sum of N444.853 billion
Derivation Revenue (13% of Mineral Revenue) to Oil-Producing States: N120.759 billion
IV. Breakdown by Revenue Component:
From Statutory Revenue (N1.018 trillion):
Federal Government: N474.455 billion
State Governments: N240.650 billion
Local Government Councils: N185.531 billion
13% Derivation Revenue: N118.256 billion
From Value Added Tax (VAT) Revenue (N631.507 billion):
Federal Government: N94.726 billion
State Governments: N315.754 billion
Local Government Councils: N221.027 billion
From Electronic Money Transfer Levy (EMTL) Revenue (N29.165 billion):
Federal Government: N4.375 billion
State Governments: N14.582 billion
Local Government Councils: N10.208 billion
From Exchange Difference Revenue (N38.849 billion):
Federal Government: N19.147 billion
State Governments: N9.712 billion
Local Government Councils: N7.487 billion
13% Derivation Revenue: N2.503 billion
From Augmentation (N100 billion):
Federal Government: N52.680 billion
State Governments: N26.720 billion
Local Government Councils: N20.600 billion
V. Revenue Trends and Observations:
The total distributable revenue for June 2025 demonstrates a significant increase of approximately N170 billion when compared to the May 2025 allocation (which stood at N1.65 trillion).
Revenues from Companies Income Tax (CIT), Petroleum Profit Tax (PPT), and EMTL showed a significant increase in June.
Conversely, revenues from Oil and Gas Royalty, VAT, Import Duty, Excise Duty, and CET Levies experienced a considerable decrease. Notably, gross VAT revenue in June was N678.17 billion, a decline of N64.65 billion from the N742.82 billion generated in May.
This substantial FAAC allocation highlights the continuous adjustments and reforms in Nigeria's revenue collection and distribution system, particularly in the post-petrol subsidy era. The increased funds aim to strengthen the financial capacity of all three tiers of government, enabling them to address developmental needs and provide essential public services across the nation.
I'm Aisha shehu
Talksocialtalka News
