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The Digest:

The Federation Account Allocation Committee (FAAC) has shared a total of N1.82 trillion among Nigeria's federal, state, and local governments for June 2025. This marks a N170 billion increase from May 2025. However, VAT revenue saw a significant drop.

Key Points:

Total Shared: N1.82 trillion distributed across federal, state, and local governments.
  • Breakdown: Federal government: N645.38 billion, States: N607.42 billion, Local governments: N444.85 billion.
  • VAT Decline: VAT revenue dropped by N60 billion to N631.5 billion from May.
  • Revenue Sources: Gross revenue of N4.23 trillion included statutory revenue, VAT, EMTL, and a N100 billion augmentation.
  • Augmentation Impact: N100 billion non-mineral revenue augmentation shared across tiers.
  • Revenue Sources Breakdown: CIT and PPT increased, but oil royalties and VAT saw a decline.
  • Exchange Revenue: N38.85 billion shared across governments, with federal getting the largest portion.

Despite the increase in overall revenue, VAT and oil-related revenue faced significant declines, underscoring the need for diversification in Nigeria's fiscal system.

Sources: Daily Post, FAAC communiqué, OAGF