By Muhammad Mamman
The Federation Account Allocation Committee (FAAC) has shared a record ₦2.225 trillion in federal revenue for August 2025, the highest disbursement ever to the three tiers of government and statutory beneficiaries.
In a communiqué issued after its monthly meeting in Abuja, FAAC said the surge was driven by stronger collections from oil and gas royalties, value-added tax (VAT), and common external tariff (CET) fees.
From the total pool, ₦1.478 trillion came from statutory revenue, ₦672.9 billion from VAT, ₦32.3 billion from the Electronic Money Transfer Levy (EMTL), and ₦41.3 billion from exchange rate gains.
Gross revenue for the month stood at ₦3.635 trillion. After deducting ₦124.8 billion for collection costs and ₦1.286 trillion for transfers, interventions, refunds, and savings, the balance was distributed.
Here’s how the allocations broke down:
- Statutory revenue (₦1.478 trillion): Federal Government ₦684.5 billion, States ₦347.2 billion, Local Governments ₦267.7 billion, and oil-producing states ₦179.3 billion as derivation funds.
- VAT (₦672.9 billion): Federal Government ₦100.9 billion, States ₦336.5 billion, Local Governments ₦235.5 billion.
- EMTL (₦32.3 billion): Federal Government ₦4.9 billion, States ₦16.2 billion, Local Governments ₦11.3 billion.
- Exchange difference (₦41.3 billion): Federal Government ₦19.8 billion, States ₦10.0 billion, Local Governments ₦7.7 billion, and ₦3.7 billion to oil-producing states as derivation.
Officials said the record allocation reflects improved revenue mobilisation and stronger fiscal buffers for all tiers of government.
