September 18, (THEWILL) — The Federation Account Allocation Committee (FAAC) has shared a total of ₦2.225 trillion among the Federal Government, states, and local government councils as August 2025 federation revenue.
Mohammed Manga, Director of Information and Public Relations at the Federal Ministry of Finance, confirmed the disbursement in a statement issued after the FAAC meeting held on Wednesday in Abuja.
Finance Minister Wale Edun commended FAAC members for their diligence, noting that ongoing economic reforms were yielding results.
He assured Nigerians that “better days are ahead,” while urging stakeholders to manage public resources prudently to meet citizens’ needs.
According to a communiqué issued at the meeting, the revenue came from a gross total of ₦3.635 trillion, comprising statutory revenue, Value Added Tax (VAT), Electronic Money Transfer Levy (EMTL), and exchange difference.
From the distributable pool, the Federal Government received ₦810.047 billion, states ₦709.831 billion, and local governments ₦522.228 billion, while oil-producing states got ₦183.012 billion as 13 percent derivation revenue.
FAAC also set aside ₦124.839 billion for collection costs and ₦1.285 trillion for transfers, interventions, and refunds.
VAT revenue for August stood at ₦722.619 billion, representing an increase of ₦34.679 billion from the ₦687.940 billion recorded in July. From this amount, the Federal Government received ₦100.935 billion, the states ₦336.452 billion, and the local councils ₦235.516 billion after deductions.
Gross statutory revenue, on the other hand, declined to ₦2.838 trillion from July’s ₦3.070 trillion, representing a shortfall of ₦231.913 billion.
After deductions, the distributable balance of ₦1.478 trillion was shared among the tiers of government. The Federal Government received ₦684.462 billion, states ₦347.168 billion, local governments ₦267.652 billion, and oil-producing states ₦179.311 billion.
The committee also reported that a total of ₦33.685 billion from the EMTL was shared, with the Federal Government receiving ₦4.851 billion, states ₦16.169 billion, and local councils ₦11.318 billion, while ₦1.347 billion was deducted as collection cost.
Similarly, ₦41.284 billion from exchange difference was distributed, with the Federal Government getting ₦19.799 billion, states ₦10.042 billion, local governments ₦7.742 billion, and oil-producing states ₦3.701 billion.
FAAC noted significant increases in oil and gas royalty, VAT, and Common External Tariff (CET) levies, while Petroleum Profit Tax, import duty, EMTL, companies income tax, and excise duty recorded declines.
The August disbursement marks FAAC’s highest-ever monthly allocation and the second consecutive month above the ₦2 trillion mark. In July, the committee shared ₦2.01 trillion at its Abuja meeting.
So far in 2025, FAAC allocations have shown steady growth: January (₦1.703 trillion), February (₦1.678 trillion), March (₦1.578 trillion), April (₦1.681 trillion), May (₦1.659 trillion), June (₦1.818 trillion), July (₦2.001 trillion), and August (₦2.225 trillion).
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