Nigeria’s Federation Account Allocation Committee (FAAC) has shared a record-breaking N2.225 trillion among the three tiers of government and other statutory recipients for August 2025, the highest ever disbursement in the country’s history.
According to a communiqué issued at the end of the FAAC meeting held in Abuja, the disbursement marks the second consecutive month that revenue allocation has surpassed the N2 trillion threshold. The Nation reports that the surge was driven by significant increases in oil and gas royalties, value-added tax (VAT), and common external tariff (CET) collections.
From the total distributable revenue of N2.225 trillion, FAAC stated 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.
The communiqué further revealed that gross federation revenue for the month was N3.635 trillion. Out of this figure, N124.839 billion was deducted as cost of collection, while N1.285 trillion was set aside for transfers, interventions, refunds, and savings.
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A breakdown of the allocation showed that from the statutory revenue of N1.478 trillion, the Federal Government received N684.462 billion, states received N347.168 billion, while local governments got N267.652 billion. Oil-producing states received N179.311 billion, representing 13 per cent derivation revenue.
Similarly, from the N672.903 billion distributable VAT revenue, the Federal Government received N100.935 billion, states N336.452 billion, and local governments N235.516 billion.
On the EMTL, the Federal Government received N4.851 billion, states N16.169 billion, and local governments N11.318 billion. From the N41.284 billion exchange difference, the Federal Government got N19.799 billion, states N10.042 billion, local governments N7.742 billion, while N3.701 billion went to oil-producing states as derivation.
Reacting to the development, President Bola Tinubu’s Special Adviser on Information and Strategy, Bayo Onanuga, said the disbursement highlights the success of the administration’s fiscal reforms.
“President Tinubu welcomes this historic milestone in revenue allocation. It is a clear reflection of the positive impact of ongoing economic and fiscal reforms, particularly in the oil and non-oil sectors,” Onanuga said in a statement.
He added that the administration remains committed to ensuring transparent distribution of revenues to all tiers of government while encouraging fiscal discipline at every level.
