Nigeria’s three tiers of government have shared a total of N1.818 trillion from the Federation Account Allocation Committee (FAAC) as revenue for June 2025, thanks to a significant boost from Companies Income Tax (CIT) and Petroleum Profit Tax (PPT).
This marks a 9.6% increase — equivalent to N159 billion — from the N1.659 trillion distributed in May, according to a press statement issued Saturday by Bawa Mokwa, Director of Press and Public Relations at the Office of the Accountant General of the Federation (OAGF).
The disbursement followed the July 2025 meeting of the Federation Account Allocation Committee (FAAC) held in Abuja, where revenue inflows and allocations to the federal, state, and local governments were reviewed and approved.
Where the trillions came from
According to the official FAAC communiqué, the N1.818 trillion shared was drawn from:
Statutory revenue: N1.018 trillion
Value Added Tax (VAT): N631.507 billion
Electronic Money Transfer Levy (EMTL): N29.165 billion
Exchange rate gains: N38.849 billion
Non-mineral revenue augmentation: N100 billion
Meanwhile, total gross revenue for June hit N4.232 trillion, out of which N162.786 billion went for cost of collection, and N2.251 trillion was earmarked for transfers, refunds, interventions, and savings.
Breakdown of the Sharing Formula
Of the N1.818 trillion distributed:
Federal Government: N645.383 billion
State Governments: N607.417 billion
Local Governments: N444.853 billion
13% Derivation (Oil-Producing States): N120.759 billion
From the statutory revenue segment alone:
FG received N474.455 billion
States: N240.650 billion
LGs: N185.531 billion
Derivation: N118.256 billion
For the VAT revenue:
FG got N94.726 billion
States: N315.754 billion
LGs: N221.027 billion
From EMTL collections:
FG: N4.375 billion
States: N14.582 billion
LGs: N10.208 billion
Exchange Difference Revenue was split as follows:
FG: N19.147 billion
States: N9.712 billion
LGs: N7.487 billion
Derivation (minerals): N2.503 billion
The N100 billion augmentation from non-mineral sources went to:
FG: N52.680 billion
States: N26.720 billion
LGs: N20.600 billion
Tax Surge Saves the Day Amid VAT Slump
June’s revenue bump was largely driven by stronger performances in CIT and PPT, pushing gross statutory revenue up to N3.485 trillion, compared to N2.094 trillion in May — a remarkable N1.390 trillion increase.
But it wasn’t all good news. VAT collections dipped to N678.165 billion in June, down from N742.820 billion the previous month — a sign of weak consumer spending and reduced imports. Other revenue heads that fell included Oil & Gas Royalties, Import Duty, Excise Duty, and CET Levies.
While the CIT and PPT performance offered a buffer, the drop in VAT and trade taxes highlights ongoing challenges in Nigeria’s non-oil revenue landscape, including subdued economic activity and declining purchasing power.
