The Federal Government, States and Local Government Councils have shared a total of over two trillion, two hundred and twenty-five billion naira from the Federation Account for the month of August 2025. The announcement was made by the Office of the Accountant General of the Federation following the FAAC meeting held in Abuja, which confirmed that the exact figure disbursed stood at N2.225 trillion. This amount covered statutory revenue, Value Added Tax, the Electronic Money Transfer Levy and exchange difference.
According to the communiqué issued after the meeting, the distributable revenue for the month comprised statutory revenue of N1.478 trillion, Value Added Tax amounting to N672.9 billion, N32.3 billion from the Electronic Money Transfer Levy and N41.2 billion from exchange difference. Despite the large total figure, the gross statutory revenue recorded a decline, falling to N2.83 trillion compared to N3.07 trillion in July, reflecting a shortfall of over N231 billion.
The breakdown shows that while VAT collections and oil and gas royalties improved, other major inflows such as petroleum profit tax, import duty, company income tax and excise duty witnessed declines. From the statutory revenue component, the Federal Government received N684 billion, states collected N347 billion, local governments got N267 billion, while oil-producing states took N179 billion as their 13 percent derivation. From the VAT pool, the Federal Government received N101 billion, states N336 billion and local governments N236 billion.
For the average Nigerian, the revenue picture paints mixed signals. The decline in company income tax and import duty reflects a slowdown in business activity, weaker imports and reduced consumer spending power. However, the rise in VAT collections indicates that citizens are still purchasing goods and services despite inflationary pressures.
The key concern remains whether this revenue will translate into better infrastructure, timely salary payments and targeted support to cushion the high cost of living. While government still has significant funds to share, the persistent fall in statutory revenues highlights the fragility of the economy. The ultimate question is how effectively this shared revenue will be managed to bring real impact to citizens at the grassroots.
STONEREPORTERS NEWSROOM 📝
📩 For more details on this and other stories, visit stonereportersnews.com
🌍 Contact us: info@stonereportersnews.com
📘 Facebook: Stone Reporters | 🐦 X (Twitter): @StoneReportNews
Add comment
Comments