Oil-producing states get N120.36bn derivation

Oil-producing states get N120.36bn derivation

Oil-producing states get N120.36bn derivation as FAAC shares N2.001tn July revenue

The Federation Account Allocation Committee has shared a total of N2.001tn among the Federal Government, states and local government councils as July 2025 revenue, marking the second consecutive month of growth in allocations.

The figure represents a 10 per cent increase from the N1.818tn shared in June, a difference of N183bn. It follows the 9.6 per cent rise recorded in June, showing a consistent upward trend in federally distributable revenue.

The details were contained in a communiqué issued after the FAAC meeting in Abuja and released in a statement signed by the Director of Press and Public Relations at the Office of the Accountant-General of the Federation, Bawa Mokwa.

The statement partly read, “A total sum of N2.001tn, being July 2025 Federation Account Revenue, has been shared to the Federal Government, States and the Local Government Councils.”

The communiqué explained that the distributable revenue comprised statutory revenue of N1.283tn, Value Added Tax of N640.610bn, Electronic Money Transfer Levy of N37.601bn and exchange difference of N39.745bn.

It added, “Total gross revenue of N3.837tn was available in the month of July 2025. Total deduction for cost of collection was N152.681bn while total transfers, interventions, refunds and savings was N1.683tn.”

The gross statutory revenue for July was N3.070tn, lower by N415.108bn compared with the N3.485tn recorded in June.

VAT receipts, however, increased slightly to N687.940bn from N678.165bn in June, showing a gain of N9.775bn.

From the distributable pool of N2.001tn, the statement noted that the Federal Government received N735.081bn, the states N660.349bn, and the local government councils N485.039bn.

A further N120.359bn, representing 13 per cent of mineral revenue, was shared to oil-producing states as derivation revenue.

The communiqué also broke down the distribution from each revenue stream. Out of the N1.283tn statutory revenue, the Federal Government received N613.805bn, states N311.330bn, and local councils N240.023bn, while N117.714bn went to derivation.

From the N640.610bn VAT revenue, the Federal Government received N96.092bn, states received N320.305bn, and the local councils received N224.214bn.

For EMTL collections of N37.601bn, N5.640bn went to the Federal Government, N18.801bn to the states and N13.160bn to local councils.

On the N39.745bn exchange difference, “The Federal Government received N19.544bn and the State Governments received N9.913bn. The Local Government Councils received N7.643bn, while the sum of N2.643bn (13 per cent of mineral revenue) was shared to the benefiting States as derivation revenue,” the statement noted.

The FAAC further observed trends in revenue performance. “In July 2025, Petroleum Profit Tax, Oil and Gas Royalty, Electronic Money Transfer Levy and Excise Duty increased significantly while Value Added Tax and Import Duty increased marginally. Companies’ Income Tax and CET Levies recorded decreases,” the statement concluded.

The July allocation is expected to support governments at all levels in meeting expenditure needs, including salaries, debt servicing and capital projects.