The Federation Account Allocation Committee (FAAC) has announced that revenue shared among the federal, state, and local governments for July 2025 stood at an unprecedented ₦2 trillion, marking one of the highest monthly allocations in recent years.
According to FAAC’s communiqué, the revenue was derived from statutory sources, Value Added Tax (VAT), Exchange Rate Gains, Electronic Money Transfer Levy (EMTL), and oil and gas royalties. The federal government received the largest share, followed by the 36 states and 774 local government areas, while a portion was also allocated to the oil-producing states under the 13% derivation principle.
While the development was welcomed as a sign of increased revenue inflow, economic experts and civil society groups have raised concerns over accountability and the effective use of the funds. They argue that without prudent management, the disbursement may not translate into real improvements in infrastructure, social services, or poverty reduction.
Dr. Adewale Adediran, a public finance analyst, noted that despite record-high allocations in the past year, many states still struggle to pay salaries, pensions, and deliver essential services. “The issue has never been about how much money is shared, but how effectively it is utilized. Transparency and fiscal discipline remain the missing links,” he said.
Similarly, advocacy groups have called on the federal and state governments to publish detailed breakdowns of how FAAC allocations are spent monthly. They stressed that with the current economic hardship facing Nigerians, there is a need to ensure that funds are not lost to mismanagement or corruption.
The July allocation comes at a time when the country is grappling with rising inflation, unemployment, and increased cost of living. Observers warn that unless FAAC disbursements are strategically invested in critical sectors such as power, education, healthcare, and agriculture, the impact on citizens will remain minimal.
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