The Federation Account Allocation Committee (FAAC) has distributed a record N1.818 trillion among Nigeria's federal, state, and local governments as revenue generated in June 2025, marking the highest monthly allocation so far in the year. This significant disbursement was confirmed in a communiqué issued after the FAAC meeting held in Abuja for July 2025, signed by Mr. Bawa Mokwa, Director of Press and Public Relations at the Office of the Accountant General of the Federation (OAGF).

This latest allocation represents a notable increase compared to previous months in 2025. In May, N1.659 trillion was shared, following N1.681 trillion in April, N1.578 trillion in March, N1.678 trillion in February, and N1.703 trillion in January.

The N1.818 trillion distributable revenue for June 2025 comprised several key streams: 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 from exchange difference revenue, and an augmentation of N100 billion sourced from non-mineral revenue.

A detailed breakdown of the distribution shows that from the N1.818 trillion, the Federal Government received N645.383 billion. State governments were allocated N607.417 billion, while local government councils received N444.853 billion. Additionally, N120.759 billion was distributed to oil-producing states as 13 percent derivation revenue from mineral sources.

The total gross revenue available in June 2025 amounted to N4.232 trillion. From this, deductions for the cost of collection were N162.786 billion, and N2.251 trillion was earmarked for transfers, interventions, refunds, and savings. An analysis of the gross revenue components indicates that statutory revenue for June stood at N3.485 trillion, a substantial increase of N1.390 trillion compared to the N2.094 trillion received in May. Conversely, gross VAT revenue experienced a decline, dropping from N742.820 billion in May to N678.165 billion in June, a decrease of N64.655 billion.

Further details on the distribution from specific revenue streams reveal that within the N1.018 trillion statutory revenue, the Federal Government received N474.455 billion, state governments N240.650 billion, and local government councils N185.531 billion, with oil-producing states getting N118.256 billion as 13 percent derivation. From the N631.507 billion generated from VAT, the Federal Government received N94.726 billion, state governments N315.754 billion, and local governments N221.027 billion. For the N29.165 billion from EMTL, the Federal Government was allocated N4.375 billion, states N14.582 billion, and local government councils N10.208 billion. Revenue from the exchange difference, totaling N38.849 billion, was shared with the Federal Government receiving N19.147 billion, states N9.712 billion, and local governments N7.487 billion, with an additional N2.503 billion for states entitled to derivation revenue. The N100 billion augmentation from non-mineral sources saw the Federal Government receive N52.680 billion, state governments N26.720 billion, and local governments N20.600 billion.

FAAC also reported increased revenue inflows in June from Companies Income Tax (CIT), Petroleum Profit Tax (PPT), and Electronic Money Transfer Levy. However, receipts from Oil and Gas Royalty, VAT, Import Duty, Excise Duty, and Common External Tariff (CET) Levies recorded noticeable declines. This significant revenue boost is anticipated to provide valuable fiscal breathing room for all tiers of government, aiding them in managing funding obligations and development programs amidst ongoing economic adjustments.