The Federation Account Allocation Committee (FAAC) has revealed that it disbursed N2.22 trillion to the federal, state, and local governments as the revenue allocation for August 2025.
This sum was drawn from a gross revenue of N3.63 trillion, according to a statement issued on Wednesday by the Ministry of Finance after FAAC’s meeting in Abuja in September.
The meeting was chaired by Mr. Wale Edun, the Minister of Finance and Coordinating Minister of the Economy.
From the total, which includes gross statutory revenue, value-added tax (VAT), the electronic money transfer levy (EMTL), and exchange differences, the allocation amounts were: the federal government received N810.05 billion, states got N709.83 billion, and local governments shared N522.23 billion.
Oil-producing states were granted N183.01 billion under the 13 per cent derivation formula.
The committee disclosed that N124.84 billion was earmarked for the cost of collection, while N1.28 trillion was set aside for transfers, interventions and refunds.
Regarding VAT, the gross revenue available for August was N722.61 billion, compared with N687.94 billion in the previous month, making for an increase of N34.67 billion.
From that VAT amount, N28.905 billion was allocated for the cost of collection, and N20.811 billion given for transfers, interventions, and refunds.
The distributable VAT portion was N672.903 billion, from which the federal government got N100.93 billion, the states got N336.45 billion, and the local governments received N235.51 billion.
Statutory revenue for August stood at N2.838 trillion, which was down by N231.91 billion from July’s N3.07 trillion.
From that statutory revenue, cost of collection used N94.58 billion, and N1.26 trillion was allocated for transfers, interventions, and refunds.
The remaining balance of N1.47 trillion was distributed with the federal government receiving N684.46 billion, the states N347.16 billion, and the local governments N267.65 billion, while N179.31 billion went to oil-producing states as derivation.
Contributions from the EMT levy of N33.68 billion were shared: the federal government got N4.85 billion, states, N16.16 billion, local governments, N11.31 billion, and N1.34 billion was used for the cost of collection.
Exchange differences of N41.28 billion were also distributed: N19.79 billion to the federal government, N10.04 billion to the states, N7.74 billion to local governments, and N3.70 billion to oil-producing states.
FAAC additionally noted that oil and gas royalty, VAT, and common external tariff (CET) levies saw significant increases in August, while petroleum profit tax (PPT), import duty, EMTL, companies’ income tax (CIT), and excise duty recorded declines.
Overall, the total revenue that was distributable in August 2025 came from statutory revenue of N1.47 trillion, VAT of N672.90 billion, N32.33 billion from the EMT levy, and N41.28 billion from exchange differences, bringing the total distributable to N2.22 trillion.
Recently, Minister Edun described the release of Nigeria’s 2024 rebased Gross Domestic Product (GDP). He called the Q1 2025 growth estimate of 3.13% a clear indicator of economic resilience and the success of ongoing reforms.
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