Olamilekan Abayomi
The Federation Account Allocation Committee (FAAC) has disbursed a record N2.225 trillion in federation revenue for August 2025 to Nigeria’s three tiers of government. This amount is the highest-ever monthly allocation and marks the second consecutive month that disbursements have exceeded the N2 trillion mark.
The distributable revenue comprised N1.478 trillion from statutory revenue, N672.903 billion from Value Added Tax (VAT), N32.338 billion from Electronic Money Transfer Levy (EMTL), and N41.284 billion from Exchange Difference. The Federal Government received N684.462 billion from statutory revenue, N100.935 billion from VAT, N4.851 billion from EMTL, and N19.799 billion from Exchange Difference.
State governments received N347.168 billion from statutory revenue, N336.452 billion from VAT, N16.169 billion from EMTL, and N10.042 billion from Exchange Difference. Local Government Councils received N267.652 billion from statutory revenue, N235.516 billion from VAT, N11.318 billion from EMTL, and N7.742 billion from Exchange Difference. Oil-producing states also received N179.311 billion as 13% derivation revenue.
The gross federation revenue for August stood at N3.635 trillion, with N124.839 billion deducted as cost of collection and N1.285 trillion set aside for transfers, interventions, refunds, and savings. Despite the record allocation, FAAC reported that gross statutory revenue fell to N2.838 trillion in August, down by N231.913 billion from N3.070 trillion in July.
The decline in statutory revenue was attributed to decreases in Petroleum Profit Tax (PPT), Companies Income Tax (CIT), Import Duty, Excise Duty, and EMTL. However, Oil and Gas Royalty, VAT, and Common External Tariff (CET) levies recorded significant increases, boosting overall revenue. VAT revenue rose to N722.619 billion, up N34.679 billion from July.
Finance Minister Wale Edun commended FAAC for diligent resource management, highlighting that ongoing reforms are beginning to yield positive results. He urged prudent management of public resources to meet citizens’ needs, stating that “better days are ahead”. The FAAC’s allocation marks a significant milestone in Nigeria’s revenue distribution, with the committee working to ensure effective allocation of resources to the various tiers of government.
