FAAC Shares Record N2.2tn to FG, States, LGs in August

Nigeria has recorded its highest-ever monthly revenue distribution, as the Federation Account Allocation Committee (FAAC) shared a total of N2.225 trillion among the three tiers of government for August 2025.

The disbursement, which took place in Abuja, marks the second straight month that FAAC allocations have surpassed the N2 trillion threshold, signalling what officials described as stronger inflows from oil and non-oil sources.

According to a communiqué issued at the end of the meeting, the bumper revenue was driven largely by higher receipts from oil and gas royalties, value-added tax (VAT), and levies under the Common External Tariff (CET).

Of the distributable sum, N1.478 trillion came from statutory revenue, N672.9 billion from VAT, N32.3 billion from the Electronic Money Transfer Levy (EMTL), and N41.3 billion from exchange differences.

Breakdown of the allocation shows that the federal government received N684.46 billion, states got N347.17 billion, while local governments shared N267.65 billion. Oil-producing states also received N179.31 billion as 13 per cent derivation.

From VAT collections, the federal government pocketed N100.9 billion, states got N336.45 billion, and local councils received N235.5 billion. Proceeds from EMTL were split with the centre taking N4.85 billion, states N16.17 billion, and LGs N11.31 billion.

Similarly, from the N41.3 billion exchange difference, the federal government received N19.8 billion, states N10.04 billion, LGs N7.74 billion, while N3.7 billion went to oil-producing states as derivation.

FAAC disclosed that the gross federation revenue for August stood at N3.635 trillion, from which N124.84 billion was deducted as cost of collection, while N1.29 trillion was set aside for savings, transfers, interventions, and refunds.

The latest figures underscore a revenue boost under President Bola Tinubu’s administration, coming at a time when the government has promised to strengthen fiscal sustainability and boost allocations to subnational governments.