By: Goodluck E. Adubazi, Abuja.
The Federation Account Allocation Committee (FAAC) has disbursed a record N2.225 trillion as federation revenue for August 2025, marking the highest-ever allocation to the three tiers of government and other statutory recipients.
This is the second consecutive month that FAAC disbursements have crossed the N2 trillion mark, a feat the committee attributed to improved receipts from Value Added Tax (VAT), Oil and Gas Royalties, and Common External Tariff (CET) levies.
According to a communiqué issued at the end of its meeting in Abuja, FAAC disclosed that gross federation revenue for the month stood at N3.635 trillion. Out of this amount, N124.839 billion was deducted as the cost of collection, while N1.285 trillion was set aside for transfers, interventions, refunds, and savings.
From the N2.225 trillion distributable revenue, FAAC explained that:
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.
A breakdown of the statutory revenue showed that the Federal Government received N684.462 billion, states got N347.168 billion, and Local Government Councils received N267.652 billion. Oil-producing states received N179.311 billion as 13% derivation.
From VAT, the Federal Government received N100.935 billion, states got N336.452 billion, while Local Governments collected N235.516 billion.
For EMTL, the Federal Government received N4.851 billion, states got N16.169 billion, and Local Governments received N11.318 billion. From Exchange Difference, the Federal Government received N19.799 billion, states got N10.042 billion, Local Governments collected N7.742 billion, while N3.701 billion went to oil-producing states as derivation.
Despite the record allocation, FAAC reported that gross statutory revenue actually fell to N2.838 trillion in August from N3.070 trillion in July, representing a drop of N231.913 billion.
The committee attributed the decline to lower receipts from Petroleum Profit Tax (PPT), Companies Income Tax (CIT), Import Duty, Excise Duty, and EMTL, even as revenues from VAT, Oil and Gas Royalties, and CET levies boosted overall earnings.