FAAC has distributed record N2.22 trillion to three tiers of government for August 2025.
NewsOnline Nigeria reports that the Federation Account Allocation Committee (FAAC) has announced the disbursement of N2.22 trillion to the federal, state, and local governments as revenue allocation for August 2025.
The allocation was drawn from a gross revenue of N3.63 trillion, according to a statement released by the Ministry of Finance following the FAAC meeting held in Abuja.
The session was chaired by Wale Edun, Minister of Finance and Coordinating Minister of the Economy. The breakdown of the allocation shows that the federal government received N810.05 billion, states received N709.83 billion, and local governments got N522.23 billion. Additionally, oil-producing states received N183.01 billion as 13% derivation revenue.
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FAAC also set aside N124.84 billion for the cost of revenue collection, while N1.28 trillion was allocated for transfers, interventions, and refunds.
Value-Added Tax (VAT) Distribution
The gross revenue available from VAT for August was N722.61 billion, up from N687.94 billion in July, marking an increase of N34.67 billion. From this amount, N28.905 billion was allocated for the cost of collection, and N20.811 billion for transfers, interventions, and refunds. The federal government received N100.93 billion, states got N336.45 billion, and local governments received N235.51 billion.
Statutory Revenue Allocation
Gross statutory revenue for August stood at N2.83 trillion, lower than N3.07 trillion in the previous month by N231.91 billion. From this, N94.58 billion was set aside for collection costs, while N1.26 trillion was allocated for transfers, interventions, and refunds. The remaining balance of N1.47 trillion was distributed as follows: federal government – N684.46 billion, states – N347.16 billion, and local governments – N267.65 billion. Oil-producing states received N179.31 billion from the 13% derivation fund.
Electronic Money Transfer Levy (EMTL) and Exchange Difference
From N33.68 billion collected under EMTL, the federal government received N4.85 billion, states N16.16 billion, and local governments N11.31 billion, with N1.34 billion set aside for collection costs. Meanwhile, N41.28 billion from exchange differences was distributed to the federal government (N19.79 billion), states (N10.04 billion), local governments (N7.74 billion), and oil-producing states (N3.70 billion).
FAAC noted that oil and gas royalty, VAT, and CET levies increased significantly, while petroleum profit tax (PPT), import duty, EMTL, companies’ income tax (CIT), and excise duty recorded decreases.
The total distributable revenue for August 2025, combining statutory revenue, VAT, EMTL, and exchange differences, was N2.22 trillion.
For context, FAAC distributed N2.001 trillion in July 2025. Finance Minister Wale Edun recently highlighted Nigeria’s Q1 2025 GDP growth estimate of 3.13%, describing it as a testament to the country’s economic resilience and the success of ongoing fiscal reforms.
