The Federation Account Allocation Committee (FAAC) has disbursed a record N2.225 trillion to the three tiers of government and other statutory recipients for the month of August 2025.
This marks the highest-ever monthly allocation in Nigeria’s history and the second consecutive month that disbursements have exceeded the N2 trillion threshold.
According to a communiqué issued after the FAAC meeting in Abuja, the significant increase was driven by a rise in oil and gas royalties, Value-Added Tax (VAT), and Common External Tariff (CET) levies.
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The total distributable revenue for August was N1.478 trillion from statutory revenue, N672.903 billion from VAT, N32.338 billion from the Electronic Money Transfer Levy (EMTL), and N41.284 billion from Exchange Difference.
The total gross revenue for the month was N3.635 trillion, with deductions for the cost of collection and other transfers totaling N1.411 trillion.
A breakdown of the distribution shows how the funds were allocated among the tiers of government:
The total statutory revenue stood at N1.478 trillion. From this, the Federal Government received N684.462 billion, State Governments received N347.168 billion, and Local Government Councils received N267.652 billion.
In addition, oil-producing states were paid N179.311 billion as 13% derivation revenue.
The VAT revenue amounted to N672.903 billion. Out of this, the Federal Government received N100.935 billion, the states received N336.452 billion, and the local governments received N235.516 billion.
The Electronic Money Transfer Levy (EMTL) revenue totalled N32.338 billion, of which the Federal Government received N4.851 billion, the states received N16.169 billion, and the local governments received N11.318 billion.
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The revenue from exchange difference was N41.284 billion. From this amount, the Federal Government received N19.799 billion, the states received N10.042 billion, and the local governments received N7.742 billion, while oil-producing states received N3.701 billion as derivation revenue.
