The Federation Account Allocation Committee (FAAC) has shared N2.225 trillion as federation revenue for August 2025, marking the highest-ever disbursement in Nigeria’s history.
This development, reported by The Nation, comes in President Bola Tinubu’s administration and represents the second consecutive month that FAAC allocations have surpassed the N2 trillion threshold.
The disbursement, made at the FAAC meeting in Abuja, was driven by increases in oil and gas royalties, value-added tax (VAT), and common external tariff (CET) levies, according to a communiqué issued at the end of the meeting.
From the total distributable revenue of N2.225 trillion:
- N1.478 trillion came 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 communiqué disclosed that gross federation revenue for the month stood at N3.635 trillion. From this, N124.839 billion was deducted as the cost of collection, while N1.285 trillion was set aside for transfers, interventions, refunds, and savings.
Breakdown of Allocation
From the statutory revenue of N1.478 trillion:
- Federal Government: N684.462 billion
- State Governments: N347.168 billion
- Local Government Councils: N267.652 billion
- Oil-producing states (13% derivation): N179.311 billion
From the distributable VAT revenue of N672.903 billion:
- Federal Government: N100.935 billion
- State Governments: N336.452 billion
- Local Government Councils: N235.516 billion
From the N32.338 billion EMTL:
- Federal Government: N4.851 billion
- State Governments: N16.169 billion
- Local Government Councils: N11.318 billion
From the N41.284 billion exchange difference:
- Federal Government: N19.799 billion
- State Governments: N10.042 billion
- Local Government Councils: N7.742 billion
- Oil-producing states (13% derivation): N3.701 billion
The August 2025 disbursement underscores a surge in federation revenues, with FAAC noting that the improved inflows from oil and non-oil sources provided the record-breaking allocation.
