The Federation Account Allocation Committee (FAAC) has announced the disbursement of a total of ₦1.818 trillion to the federal, state, and local governments for the month of June 2025, marking a 9.6 percent increase from the previous allocation.
According to a statement released by the Director of Information, Office of the Accountant-General of the Federation, the surge in allocation was largely driven by improved revenue inflows from oil and non-oil sources, including petroleum profit tax, VAT, import and excise duties, and companies’ income tax.
Breakdown of the disbursement shows that the Federal Government received ₦391.932 billion, state governments got ₦403.403 billion, while the local government councils shared ₦293.816 billion. Additionally, oil-producing states received ₦264.134 billion as 13 percent derivation revenue.
The FAAC committee also disclosed that gross revenue available for June stood at ₦2.325 trillion, out of which deductions for cost of collection and transfers to relevant accounts were made before the net distributable revenue was shared.
Finance analysts have attributed the rise in revenue to improved oil output, increased crude oil prices in the international market, and efficient tax administration.
The committee urged all levels of government to prioritize fiscal discipline and ensure transparent use of the funds for the benefit of their respective constituents.
This latest allocation underscores the federal government’s commitment to equitable revenue distribution and the pursuit of financial sustainability across all tiers of government.
