Oil-Producing States Receive ₦120.36bn as FAAC Shares ₦2.001tn July Revenue

BY chioma Jenny
August 23, 2025
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The Federation Account Allocation Committee (FAAC) has disbursed a total of ₦2.001 trillion for the month of July 2025, with oil-producing states receiving ₦120.36 billion as part of the 13 per cent derivation fund.

According to figures released after the FAAC meeting in Abuja, the revenue shared among the three tiers of government came from statutory allocations, Value Added Tax (VAT), Electronic Money Transfer Levy (EMTL) and exchange gains. Out of a gross revenue of ₦3.83 trillion, the distributable sum was pegged at ₦2 trillion after deductions for collection costs and other interventions.

From the allocation, the federal government received ₦735.08 billion, states got ₦660.34 billion, while local government councils took ₦485.03 billion. The oil-producing states benefited from an additional ₦120.36 billion in derivation, as provided for under Section 162 of the constitution.

Sectoral breakdown showed that statutory revenue dropped to ₦3.07 trillion in July from ₦3.48 trillion recorded in June, a decline of over ₦400 billion. After deductions, ₦1.28 trillion was shared: the federal government received ₦613.81 billion, states ₦311.33 billion, local councils ₦240.02 billion, and oil states ₦117.71 billion.

On the other hand, VAT collections recorded a slight improvement, rising to ₦687.94 billion from June’s ₦678.16 billion. Out of this amount, ₦640.61 billion was shared among the federal, state and local governments, while ₦27.51 billion went to revenue collection agencies and ₦19.81 billion to refunds and interventions.

The committee also approved ₦152.68 billion as cost of collection for revenue-generating agencies, while ₦1.68 trillion was earmarked for various transfers, interventions and refunds.

The latest figures highlight the continuing fiscal pressure on the federation despite modest gains from VAT. The derivation fund for oil-producing states remains a critical source of revenue for Niger Delta states whose finances depend heavily on proceeds from crude oil.