The Federation Account Allocation Committee (FAAC) has disbursed a total of N2.225 trillion as federation revenue for August 2025, marking the highest monthly allocation ever distributed to the three tiers of government and other statutory beneficiaries.
According to a communiqué issued after the FAAC meeting in Abuja, the increase in revenue was driven by higher collections from Oil and Gas Royalties, Value Added Tax (VAT), and Common External Tariff (CET) levies.
The total distributable revenue comprised N1.478 trillion from statutory revenue, N672.903 billion from VAT, N32.338 billion from the Electronic Money Transfer Levy (EMTL), and N41.284 billion from Exchange Difference.
FAAC reported that gross federation revenue for August stood at N3.635 trillion. From this amount, N124.839 billion was deducted as the cost of collection, while N1.285 trillion was set aside for transfers, refunds, savings, and other interventions.
From the statutory revenue of N1.478 trillion, the Federal Government received N684.462 billion, State Governments received N347.168 billion, and Local Governments received N267.652 billion. An additional N179.311 billion was allocated to oil-producing states as 13 percent derivation revenue.
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From the VAT pool of N672.903 billion, the Federal Government received N100.935 billion, the States received N336.452 billion, and the Local Governments got N235.516 billion.
Distribution from the EMTL amounted to N32.338 billion, with the Federal Government receiving N4.851 billion, States N16.169 billion, and Local Governments N11.318 billion.
From the Exchange Difference of N41.284 billion, the Federal Government received N19.799 billion, States N10.042 billion, Local Governments N7.742 billion, while N3.701 billion went to oil-producing states as 13 percent derivation.
Despite the record total allocation, FAAC disclosed that gross statutory revenue declined to N2.838 trillion in August from N3.070 trillion in July, representing a drop of N231.913 billion.
The decline was attributed to lower revenue from Petroleum Profit Tax (PPT), Companies Income Tax (CIT), Import Duty, Excise Duty, and EMTL, even as VAT, Oil and Gas Royalties, and CET levies posted increases.
