FAAC Revenue Rises by N159bn in June 2025, Hits N1.818tn

The Federation Account Allocation Committee (FAAC) has reported a significant increase in revenue distribution for June 2025, with N1.818 trillion shared among the Federal Government, states, and local government councils, marking a 9.6% increase—or N159 billion—from the N1.659 trillion shared in May 2025.

This was disclosed in a statement issued on Saturday by Bawa Mokwa, Director of Press and Public Relations, Office of the Accountant General of the Federation.

“A total sum of N1.818tn, being June 2025 Federation Account Revenue, has been shared to the Federal Government, states and the local government councils,” the statement read.

The revenue distribution followed the July 2025 FAAC meeting held in Abuja, where fiscal authorities from all levels of government convened to review the month’s inflows and approve disbursements.

Breakdown of the June Allocation

The N1.818tn distributed revenue was drawn from multiple sources:

• Statutory Revenue: N1.018tn

• Value Added Tax (VAT): N631.507bn

• Electronic Money Transfer Levy (EMTL): N29.165bn

• Exchange Difference Revenue: N38.849bn

• Non-Mineral Augmentation: N100bn

Meanwhile, the total gross revenue for June 2025 stood at N4.232tn. From this:

• N162.786bn was deducted as the cost of collection

• N2.251tn was set aside for transfers, refunds, interventions, and savings

Revenue Sharing Among Tiers of Government

From the N1.818tn distributable revenue:

• Federal Government: N645.383bn

• State Governments: N607.417bn

• Local Government Councils: N444.853bn

• Oil-Producing States (13% Derivation): N120.759bn

Statutory Revenue (N1.018tn):

• FG: N474.455bn

• States: N240.650bn

• LGs: N185.531bn

• Derivation to Oil-Producing States: N118.256bn

VAT Revenue (N631.507bn):

• FG: N94.726bn

• States: N315.754bn

• LGs: N221.027bn

Electronic Money Transfer Levy (N29.165bn):

• FG: N4.375bn

• States: N14.582bn

• LGs: N10.208bn

Exchange Difference Revenue (N38.849bn):

• FG: N19.147bn

• States: N9.712bn

• LGs: N7.487bn

• Oil-Producing States (Derivation): N2.503bn

Non-Mineral Augmentation (N100bn):

• FG: N52.680bn

• States: N26.720bn

• LGs: N20.600bn

Revenue Drivers and Economic Trends

The increase in June revenue was largely driven by stronger collections from Companies Income Tax (CIT) and Petroleum Profit Tax (PPT), which saw significant gains.

• Gross statutory revenue rose sharply to N3.485tn in June, up from N2.094tn in May—a N1.390tn month-on-month increase.

However, other components underperformed:

• Gross VAT declined to N678.165bn, compared to N742.820bn in May, a N64.655bn drop attributed to reduced import activity and softer consumer demand.

• Other tax sources, including Oil and Gas Royalties, Import Duty, Excise Duty, and CET Levies, also recorded downturns.

These trends point to a mixed economic outlook—with corporate profits and oil revenues bolstering federal earnings, while consumption-based and trade taxes continue to reflect economic strain and subdued demand.