Nigeria Distributes ₦1.8 Trillion June 2025 Revenue Across Government Tiers

 The Federation Account Allocation Committee (FAAC) disbursed ₦1.8 trillion to the federal government, 36 states, and 774 local government areas (LGAs) as the June 2025 revenue allocation, announced on July 18, 2025, by Finance Minister Wale Edun. 

This 12% increase from May’s ₦1.6 trillion reflects a recovery in oil production to 1.52 million barrels per day (mb/d), exceeding the OPEC quota of 1.5 mb/d, and a 10% boost in non-oil taxes, including value-added tax. The federal government received ₦700 billion, states ₦600 billion, and LGAs ₦500 billion, with an additional ₦50 billion allocated to the Niger Delta Development Commission for environmental projects.

The breakdown includes ₦1.2 trillion from oil and gas revenues, driven by a $85 per barrel price, and ₦600 billion from taxes, with Lagos and Rivers states advocating for a revised revenue-sharing formula due to their higher internally generated revenue. Northern states, heavily reliant on federal funds, welcomed the increase, which eases pressure on the 2025 budget deficit of ₦6 trillion. 

However, inflation at 33% continues to erode purchasing power, with food prices up 40% year-on-year per the National Bureau of Statistics. Analysts see the disbursement as a fiscal boost, with a mid-year economic review planned to sustain momentum, though challenges like oil theft, costing $1 billion annually, remain unaddressed.