The Federation Account Allocation Committee (FAAC) has distributed a total of N1.818 trillion to the Federal Government, state governments, and local government councils for June 2025.
This represents a 9.6% increase, equivalent to N159 billion, compared to the N1.659 trillion shared in May 2025.
This is contained in a FAAC statement released on Saturday by Mr. Bawa Mokwa, Director of Press and Public Relations in the Office of the Accountant General of the Federation (OAGF).
The total distributable revenue of N1.818 trillion comprised N1.018 trillion from statutory revenue, N631.507 billion from Value Added Tax (VAT), N29.165 billion from Electronic Money Transfer Levy (EMTL), N38.849 billion as Exchange Difference revenue, and an additional N100 billion augmentation sourced from non-mineral revenue.
The Federal Government received N645.383 billion, while State Governments shared N607.417 billion. Local Government Councils received N444.853 billion, and an additional N120.759 billion was disbursed to oil-producing states as 13% derivation revenue.
Persecondnews observes that a key factor behind the rise in June’s distributable revenue was the significant increase in Companies Income Tax (CIT) and Petroleum Profit Tax (PPT), both of which recorded stronger collections during the period.
“The growth in CIT and PPT revenues provided a much-needed boost to the Federation Account,” the statement noted.
However, not all revenue components performed positively. Gross VAT collections dropped to N678.165 billion in June, down by N64.655 billion from N742.820 billion in May.
The FAAC statement provided a detailed breakdown of the revenue distribution. From the N1.018 trillion statutory revenue component, the Federal Government received N474.455 billion, State Governments received N240.650 billion, and Local Governments got N185.531 billion.
From this segment, N118.256 billion was allocated as derivation revenue to eligible states.
The N631.507 billion VAT revenue was shared among the three tiers of government, with the Federal Government receiving N94.726 billion, the States N315.754 billion, and the Local Governments N221.027 billion.
The increase in distributable revenue is expected to have a positive impact on the economy, enabling the three tiers of government to fund their budgetary commitments.
However, the fluctuation in VAT and trade-based collections signals continued pressure on consumer demand and international trade, two key contributors to Nigeria’s non-oil revenue base.
Leave a comment