For August 2025, Nigeria’s Federation Account Allocation Committee (FAAC) has approved the distribution of N2.22 trillion among the federal, state, and local governments.
The allocation was decided at the FAAC meeting in Abuja, chaired by the Minister, from a total gross income of N3.63 trillion. Wale Edun, Finance and Coordinating Minister of the Economy.
The breakdown revealed that local authorities shared N522.23 billion, state governments took N709.83 billion, and the federal government received N810.05 billion. Consistent with the deriving principle, states producing oil also got N183.01 billion.
Furthermore, N124.84 billion was subtracted for revenue collection expenses, and N1.28 trillion was set aside for transfers, interventions, and refunds.
With a significant increase of N34.67 billion from N687.94 billion in July, the gross revenue from Value Added Tax (VAT) for August reached N722.61 billion. From this pool, the federal government gathered N100.93 billion, the states N336.45 billion, and local authorities N235.51 billion.
The News Chronicle notes that FAAC income has continued to change along with market reality, as statutory flows decreased from the preceding month. Gross statutory income in August was N2.83 trillion, less N231.91 billion than N3.07 trillion in July. The federal government obtained N684.46 billion from the distributable balance of N1.47 trillion; the states, N347.16 billion; and local governments, N267.65 billion, while N179.31 billion went to oil-producing countries as 13 percent derivative.
Furthermore, FAAC stated that N33.68 billion from the Electronic Money Transfer Levy (EMTL) was distributed with the federal government obtaining N4.85 billion and states N16.16 billion, and local governments N11.31 billion.
Additionally split was revenue from exchange difference of N41.28 billion, wherein the federal government received N19.79 billion, states N10.04 billion, Oil-producing states N3.70 billion, and local governments N7.74 billion.
According to FAAC, revenues from oil and gas royalties, VAT, and CET levies saw increases during the month, while petroleum profit tax, import duties, company Income tax, EMTL, and excise taxes saw decreases.
FAAC distributed N2.001 trillion in July 2025, showing an ascending allocation trend notwithstanding changes in statutory receipts, for context.
