FAAC Disburses N2.22 Trillion to Federal, State, and Local Governments for August 2025 Revenue Allocation

The Federation Account Allocation Committee (FAAC) has shared a total of N2.22 trillion among Nigeria’s federal, state, and local governments for August 2025, marking one of the largest allocations in recent months. The Ministry of Finance disclosed this in a statement on Wednesday after the committee’s monthly meeting held in Abuja, chaired by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun.

According to the breakdown, the federal government received N810.05 billion, states got N709.83 billion, and local government areas were allocated N522.23 billion. In addition, oil-producing states received N183.01 billion as part of the 13 percent derivation revenue. FAAC explained that the August allocation combined funds from statutory revenue, Value Added Tax (VAT), the Electronic Money Transfer Levy (EMTL), and exchange rate differences.

The committee highlighted that gross revenue from VAT rose to N722.61 billion in August, up from N687.94 billion recorded in July, an increase of N34.67 billion. Out of this VAT revenue, N28.90 billion was set aside for collection costs, while N20.81 billion was earmarked for transfers, interventions, and refunds. The federal government received N100.93 billion from the distributable VAT, with states receiving N336.45 billion and local governments receiving N235.51 billion.

Gross statutory revenue for the month stood at N2.83 trillion, slightly lower than July’s N3.07 trillion by N231.91 billion. After deductions for collection costs and transfers, the federal government received N684.46 billion, states received N347.16 billion, and local governments were allocated N267.65 billion. Oil-producing states also received N179.31 billion from statutory revenue as part of the 13 percent derivation.

FAAC further noted that oil and gas royalty, VAT, and CET levies recorded significant increases, while Petroleum Profit Tax (PPT), import duty, EMTL, Companies Income Tax (CIT), and excise duty fell during the month. Overall, the total distributable revenue for August 2025 was drawn from N1.47 trillion statutory revenue, N672.90 billion VAT, N32.33 billion EMTL, and N41.28 billion exchange differences, summing up to N2.22 trillion. This represents an increase from the N2.001 trillion shared in July 2025, underscoring ongoing revenue reforms.

source: nairametrics