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- Jul 21, 2025
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Crude Oil Dominates as FAAC Shares N1.82 Trillion for June — AGF
Crude Oil Dominates as FAAC Shares N1.82 Trillion for June — AGF
Nigeria’s oil wealth once again took center stage in June 2025, powering a whopping 66% of the N1.818 trillion distributed by the Federation Account Allocation Committee (FAAC) to the federal, state, and local governments.
According to the Office of the Accountant General of the Federation (AGF), the sharp increase in allocation — up by N159 billion or 9.6% from May — was driven primarily by stronger inflows from Petroleum Profit Tax (PPT) and mineral-related revenues.
At the FAAC meeting held in July in Abuja, government representatives reviewed the nation’s revenue performance and gave the green light for distribution. Bawa Mokwa, Director of Press and Public Relations at the AGF’s office, confirmed in a weekend statement that statutory revenue was the largest contributor, with the oil sector leading the charge.
Statutory revenues leapt from N2.094 trillion in May to N3.485 trillion in June — a staggering N1.390 trillion month-on-month increase, driven largely by robust collections from upstream oil activities.
Out of this revenue, over N1.018 trillion was shared across the three tiers of government.
In addition, oil-producing states received over N120 billion in derivation payments, further bolstered by exchange gains tied to mineral income. In total, the oil sector contributed an estimated N1.2 trillion, accounting for two-thirds of the entire June FAAC disbursement.
Meanwhile, the non-oil sector struggled. Value Added Tax (VAT) revenue fell by more than N64 billion, reversing previous gains. Import and excise duties also dropped, reflecting sluggish trade activity and weak consumer demand — signs of persistent economic headwinds.
Despite the slump in non-oil revenues, the strong performance of the oil sector ensured a significant overall boost in FAAC allocations for June.
The numbers, however, underscore Nigeria’s continued reliance on oil earnings, even as efforts to diversify the economy grapple with structural challenges and volatile market conditions.
By Haruna Yakubu Haruna
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