The Federation Account Allocation Committee (FAAC) has disbursed a record-breaking ₦2.225 trillion as federation revenue for August 2025.
This made it the highest allocation ever to Nigeria’s three tiers of government and other statutory beneficiaries.
This is the second consecutive month FAAC disbursements have surpassed the ₦2 trillion mark, according to The Nation newspaper.
The surge in revenue was driven by increases in oil and gas royalties, Value Added Tax (VAT) and Common External Tariff (CET) collections.
It was outlined in the communiqué issued at the end of the FAAC meeting held in Abuja.
Breakdown of the ₦2.225 Trillion Distributable Revenue:
₦1.479 trillion from statutory revenue
₦672.903 billion from VAT
₦32.338 billion from the Electronic Money Transfer Levy (EMTL)
₦41.284 billion from Exchange Rate Gains
The gross revenue for the month was ₦3.635 trillion, from which ₦124.839 billion was deducted as the cost of collection.
The sum of ₦1.286 trillion was set aside for transfers, interventions, refunds and savings.
Allocation of Statutory Revenue (₦1.479 trillion):
Federal Government: ₦684.462 billion
State Governments: ₦347.168 billion
Local Governments: ₦267.652 billion
Oil-producing states (13% derivation): ₦179.311 billion
Allocation of VAT Revenue (₦672.903 billion):
Federal Government: ₦100.935 billion
State Governments: ₦336.452 billion
Local Governments: ₦235.516 billion
Allocation from EMTL (₦32.338 billion):
Federal Government: ₦4.851 billion
State Governments: ₦16.169 billion
Local Governments: ₦11.318 billion
Allocation from Exchange Difference (₦41.284 billion):
Federal Government: ₦19.799 billion
State Governments: ₦10.042 billion
Local Governments: ₦7.742 billion
Oil-producing states (13% derivation): ₦3.701 billion
This unprecedented revenue distribution highlights a significant fiscal milestone in President Bola Tinubu’s administration.
It reflects improved revenue collection and resource management.
