The Federation Account Allocation Committee (FAAC) has disbursed a record N2.225 trillion in federation revenue for August 2025—the highest ever allocation to the Federal Government, states, local governments, and other statutory recipients. This marks the second consecutive month that FAAC disbursements have exceeded the N2 trillion threshold.
The revenue, shared at the August 2025 FAAC meeting in Abuja, was driven by increases in oil and gas royalties, Value Added Tax (VAT), and Common External Tariff (CET) levies. According to the FAAC communiqué, of the N2.225 trillion total distributable revenue, N1.478 trillion came from statutory revenue, N672.9 billion from VAT, N32.3 billion from the Electronic Money Transfer Levy (EMTL), and N41.3 billion from exchange differences.
The communiqué further revealed that gross federation revenue for the month stood at N3.635 trillion. From this amount, N124.8 billion was deducted as cost of collection, while N1.285 trillion was set aside for transfers, interventions, refunds, and savings.
From the statutory revenue of N1.478 trillion, the Federal Government received N684.5 billion, state governments N347.2 billion, and local governments N267.7 billion, with oil-producing states receiving N179.3 billion as 13 per cent derivation revenue.
For the VAT component of N672.9 billion, the Federal Government received N100.9 billion, the states N336.5 billion, and local governments N235.5 billion. From the N32.3 billion EMTL, allocations went to the Federal Government (N4.9 billion), states (N16.2 billion), and local governments (N11.3 billion). The N41.3 billion exchange difference was shared with the Federal Government receiving N19.8 billion, states N10 billion, local governments N7.7 billion, and N3.7 billion allocated to oil-producing states.
The record disbursement underscores the continued buoyancy of Nigeria’s federation revenues, even as stakeholders await assurances that the funds will translate into tangible improvements in infrastructure, public services, and economic development across the country.
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