Nigeria’s Three Tiers of Government Share N2.001 Trillion in July 2025 Revenue

The Federal, State, and Local Governments of Nigeria have shared a total of N2.001 trillion, representing the country’s Federation Account Revenue for July 2025. This revenue was distributed during the August 2025 Federation Account Allocation Committee (FAAC) meeting in Abuja.

According to the National Bureau of Statistics, the total distributable revenue for the month comprised N1,282.872 trillion from statutory revenue, N640.610 billion from Value Added Tax (VAT), N37.601 billion from Electronic Money Transfer Levy (EMTL), and N39.745 billion from exchange differences.

The breakdown of the allocation showed that the Federal Government received N735.081 billion, while the State Governments received N660.349 billion. Local Government Councils received N485.039 billion. An additional N120.359 billion (13% of mineral revenue) was shared among the benefiting states as derivation revenue.

Further analysis revealed that the Federal Government’s share of statutory revenue was N613.805 billion, with State Governments receiving N311.330 billion. Local Government Councils received N240.023 billion. From VAT revenue, the Federal Government received N96.092 billion, State Governments received N320.305 billion, and Local Government Councils received N224.214 billion.

It’s worth noting that total gross revenue available for July 2025 was N3,836.980 trillion. However, deductions for collection costs and transfers reduced this figure to the N2,001 trillion distributed among the three tiers of government.

Compared to June 2025, Nigeria’s statutory revenue decreased by N415.108 billion, while VAT revenue increased by N9.775 billion. Petroleum Profit Tax, Oil and Gas Royalty, Electronic Money Transfer Levy, and Excise Duty increased significantly, while Companies Income Tax and CET levies decreased.

This revenue distribution will likely have significant implications for the nation’s economic development, as funds are allocated to support various projects and initiatives across Nigeria.