The Federation Account Allocation Committee (FAAC) has disbursed a total of ₦2.22 trillion to the three tiers of government for August 2025. The allocation was announced on Wednesday at FAAC’s September meeting in Abuja, chaired by Minister of Finance, Wale Edun.
According to the Ministry of Finance, the revenue shared came from a gross total of ₦3.63 trillion, comprising statutory revenue, Value Added Tax (VAT), the Electronic Money Transfer Levy (EMTL), and exchange rate differences.
Breakdown of Allocation shows Federal Government – ₦810.05 billion; State Governments: ₦709.83 billion; Local Governments: ₦522.23 billion and Oil-Producing States (13% derivation): ₦183.01 billion.
Additionally, FAAC reported that ₦124.84 billion was deducted as the cost of collection, while ₦1.28 trillion went into transfers, interventions, and refunds.
Revenue from VAT for August stood at ₦722.61 billion, up from ₦687.94 billion in July — an increase of ₦34.67 billion. After deductions for collection costs (₦28.91 billion) and transfers/refunds (₦20.81 billion), the balance of ₦672.90 billion was distributed as follows: FG – ₦100.93 billion; States: – ₦336.45 billion, and LGAs: ₦235.51 billion
Gross statutory revenue dropped to ₦2.83 trillion in August, down by ₦231.91 billion from July’s ₦3.07 trillion. After deductions, ₦1.47 trillion remained for sharing, as follows: FG – ₦684.46 billion; States: – ₦347.16 billion, LGAs: ₦267.65 billion, and Derivation (13%) – ₦179.31 billion.
From EMTL collections of ₦33.68 billion, the FG received ₦4.85 billion, states ₦16.16 billion, LGAs ₦11.31 billion, and ₦1.34 billion went to collection costs.
Meanwhile, ₦41.28 billion from exchange difference was shared as follows: FG (₦19.79 billion), states (₦10.04 billion), LGAs (₦7.74 billion), and derivation (₦3.70 billion).
The communiqué noted increases in oil and gas royalties, VAT, and Common External Tariff (CET) levies, while petroleum profit tax (PPT), companies income tax (CIT), import duty, EMTL, and excise duty recorded declines.
In summary, the ₦2.22 trillion distributable revenue for August was made up of: Statutory revenue – ₦1.47 trillion; VAT – ₦672.90 billion; EMTL – ₦32.33 billion, and Exchange difference, at ₦41.28 billion.
