The Federation Account Allocation Committee (FAAC) on Wednesday announced that the Federal Government, states, and local government councils shared a total of N2.225 trillion as August 2025 revenue, representing an 11.2 per cent increase compared with the N2.001 trillion distributed in July. The latest disbursement marks the third consecutive month of growth in revenue allocation across all tiers of government.
According to a statement by the Director of Press and Public Relations at the Office of the Accountant General of the Federation, Bawa Mokwa, the allocation was made during the FAAC meeting held in Abuja. Mokwa explained that the August distributable revenue comprised N1.478 trillion statutory revenue, N672.903 billion Value Added Tax (VAT), N32.338 billion Electronic Money Transfer Levy (EMTL), and N41.284 billion Exchange Difference.
From the statutory revenue, the Federal Government received N684.462 billion, states got N347.168 billion, and local government councils were allocated N267.652 billion. Oil-producing states also received N179.311 billion as 13 per cent derivation revenue. Out of the VAT revenue, the Federal Government received N100.935 billion, the states received N336.452 billion, and local governments received N235.516 billion.
FAAC added that from the EMTL revenue, the Federal Government got N4.851 billion, states received N16.169 billion, and local governments received N11.318 billion. For the Exchange Difference, the Federal Government received N19.799 billion, states N10.042 billion, local governments N7.742 billion, while oil-producing states earned N3.701 billion as derivation revenue. Gross statutory revenue for August stood at N2.838 trillion, lower than the N3.070 trillion recorded in July, while VAT gross revenue increased to N722.619 billion from N687.940 billion in July.
FAAC noted that oil and gas royalties, VAT, and Common External Tariff levies recorded significant increases, while Petroleum Profit Tax, Import Duty, Companies Income Tax, Excise Duty, and EMTL fell. President Bola Tinubu recently disclosed that Nigeria achieved its 2025 revenue target in August, driven largely by non-oil sector proceeds, reflecting the government’s push to diversify revenue sources and strengthen fiscal stability.
source: punch