The Federation Account Allocation Committee (FAAC) has shared a record N2.225 trillion as federation revenue among the Federal Government, states, and local government councils for August 2025.
This marks the highest monthly allocation ever, and the second consecutive month FAAC disbursements have exceeded N2 trillion. In July, the committee distributed N2.01 trillion during its meeting in Abuja, supported by increases in Oil and Gas Royalty, Value Added Tax (VAT), and Common External Tariff (CET) levies.
According to a communiqué issued at the end of its September meeting, the gross federation revenue for August stood at N3.635 trillion. From this, N124.839 billion was deducted as the cost of collection, while N1.285 trillion was set aside for transfers, interventions, refunds, and savings.
Breakdown of the N2.225 trillion distributable revenue showed that 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.
From the statutory revenue, the Federal Government received N684.462 billion, states got N347.168 billion, and local governments received N267.652 billion. Oil-producing states earned an additional N179.311 billion as 13 percent derivation revenue.
Out of the VAT pool of N672.903 billion, the Federal Government received N100.935 billion, states got N336.452 billion, while local councils received N235.516 billion.
From the EMTL revenue of N32.338 billion, the Federal Government received N4.851 billion, the states received N16.169 billion, and the councils received N11.318 billion. For the N41.284 billion Exchange Difference, the Federal Government took N19.799 billion, states received N10.042 billion, councils got N7.742 billion, and oil-producing states shared N3.701 billion as derivation.
FAAC noted, however, that gross statutory revenue for August fell to N2.838 trillion, compared to N3.070 trillion in July—a decline of N231.913 billion. The drop was attributed to lower collections from Petroleum Profit Tax (PPT), Companies Income Tax (CIT), Import Duty, Excise Duty, and EMTL. Meanwhile, VAT, Oil and Gas Royalty, and CET levies boosted overall inflows.
So far in 2025, FAAC allocations have been on a steady rise: 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 now August (N2.225 trillion).
