Nigeria’s Federation Account Allocation Committee (FAAC) has shared an unprecedented ₦2.225 trillion among the three tiers of government and other statutory beneficiaries for August 2025.
According to information obtained by BizWatch Nigeria, the amount marks the largest revenue allocation in Nigeria’s history, reflecting improved inflows from oil and gas royalties, value-added tax (VAT), and Common External Tariff (CET) receipts.
A communiqué issued at the conclusion of the FAAC meeting in Abuja confirmed that the surge in available revenue drove the historic disbursement.
Breakdown of August 2025 FAAC Allocation
From the ₦2.225 trillion distributed:
- ₦1.478 trillion came from statutory revenue,
- ₦672.903 billion was derived from VAT,
- ₦32.338 billion accrued from the Electronic Money Transfer Levy (EMTL), and
- ₦41.284 billion originated from Exchange Difference.
The communiqué further revealed that gross revenue for the federation in August stood at ₦3.635 trillion. From this amount, ₦124.839 billion was deducted as collection costs, while ₦1.285 trillion was earmarked for transfers, interventions, refunds, and savings.
Statutory Revenue Distribution
Out of the statutory allocation of ₦1.478 trillion:
- The federal government received ₦684.462 billion,
- State governments were allocated ₦347.168 billion,
- Local government councils collected ₦267.652 billion, and
- ₦179.311 billion (representing 13% of mineral revenue) was shared as derivation funds to oil-producing states.
VAT Revenue Allocation
From the total ₦672.903 billion VAT collections:
- The federal government got ₦100.935 billion,
- States received ₦336.452 billion,
- Local governments were allocated ₦235.516 billion.
EMTL Revenue Distribution
The ₦32.338 billion EMTL funds were shared as follows:
- Federal government: ₦4.851 billion,
- States: ₦16.169 billion,
- Local governments: ₦11.318 billion.
Exchange Difference Distribution
From the ₦41.284 billion exchange gain:
- Federal government: ₦19.799 billion,
- States: ₦10.042 billion,
- Local governments: ₦7.742 billion.
Additionally, ₦3.701 billion (13% of mineral revenue) was also released to oil-producing states as derivation payment.
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