FAAC Disburses Record N2.225 Trillion To FG, States, LG’s for August

The Federation Account Allocation Committee (FAAC) has shared a record N2.225 trillion among the three tiers of government as federation revenue for August 2025.

This is the highest monthly allocation ever recorded and marks the second consecutive month that FAAC disbursements have surpassed the N2 trillion threshold.

In July, the committee disbursed N2.01 trillion at its Abuja meeting, buoyed by increased Oil and Gas Royalty, Value Added Tax (VAT) and Common External Tariff (CET) levies, according to a communiqué issued at the end of the latest meeting.

Of the N2.225 trillion distributable revenue for August, FAAC said N1.478 trillion came 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.

Gross federation revenue for the month stood at N3.635 trillion. From this amount, N124.839 billion was deducted as cost of collection, while N1.285 trillion was set aside for transfers, interventions, refunds and savings.

From the N1.478 trillion statutory revenue, the Federal Government received N684.462 billion, the states received N347.168 billion, and local government councils got N267.652 billion. A further N179.311 billion (13 per cent of mineral revenue) went to oil-producing states as derivation revenue.

From VAT proceeds of N672.903 billion, the Federal Government received N100.935 billion, states received N336.452 billion, and local governments got N235.516 billion.

Of the N32.338 billion shared from EMTL, the Federal Government got N4.851 billion, the 36 states received N16.169 billion and N11.318 billion went to the local governments.

From the N41.284 billion Exchange Difference, the Federal Government received N19.799 billion, states received N10.042 billion, councils received N7.742 billion, while N3.701 billion (13 per cent of mineral revenue) was shared to oil-producing states as derivation.

While total allocation in August set a new record, FAAC noted that gross statutory revenue fell to N2.838 trillion, compared to N3.070 trillion in July — a decline of N231.913 billion.

The communiqué explained that Petroleum Profit Tax (PPT), Companies Income Tax (CIT), Import Duty, Excise Duty, and EMTL recorded decreases during the month, while VAT, Oil and Gas Royalty, and CET levies boosted overall revenue.

So far in 2025, FAAC allocations have shown steady growth: January (N1.703 trillion), February (N1.678 trillion), March (N1.578 trillion), April (N1.681 trillion), May (N1.659 trillion), June (N1.818 trillion), July (N2.001 trillion), and August (N2.225 trillion).