The Federation Account Allocation Committee (FAAC) has disbursed ₦2.225 trillion as federation revenue for August 2025 — the highest ever allocation to the three tiers of government and other statutory recipients.
This marks the second consecutive month that FAAC disbursements have crossed the ₦2 trillion mark.
The revenue, shared at the August 2025 FAAC meeting in Abuja, was buoyed by increases in Oil and Gas Royalty, Value Added Tax (VAT), and Common External Tariff (CET) levies, according to a communiqué issued at the end of the meeting.
Out of the ₦2.225 trillion total distributable revenue, FAAC said ₦1,478.593 trillion came from statutory revenue, ₦672.903 billion from VAT, ₦32.338 billion from the Electronic Money Transfer Levy (EMTL), and ₦41.284 billion from Exchange Difference.
The communiqué revealed that gross federation revenue for the month stood at ₦3.635 trillion. From this amount, ₦124.839 billion was deducted as cost of collection, while ₦1,285.845 trillion was set aside for transfers, interventions, refunds, and savings.
From the statutory revenue of ₦1.478 trillion, the Federal Government received ₦684.462 billion, State Governments received ₦347.168 billion, and Local Government Councils received ₦267.652 billion. A further ₦179.311 billion (13 percent of mineral revenue) went to oil-producing states as derivation revenue.
From the distributable VAT revenue of ₦672.903 billion, the Federal Government received ₦100.935 billion, the States received ₦336.452 billion, while the Local Governments got ₦235.516 billion.
Of the ₦32.338 billion shared from EMTL, the Federal Government received ₦4.851 billion, the States received ₦16.169 billion, and the Local Governments received ₦11.318 billion.
From the ₦41.284 billion Exchange Difference, the Federal Government received ₦19.799 billion, the States received ₦10.042 billion, the Local Governments received ₦7.742 billion, while ₦3.701 billion (13 percent of mineral revenue) was shared to the oil-producing states as derivation.
While total allocation in August set a new record, FAAC disclosed that gross statutory revenue fell to ₦2.838 trillion, compared to ₦3.070 trillion in July — a drop of ₦231.913 billion.
The communiqué explained that Petroleum Profit Tax (PPT), Companies Income Tax (CIT), Import Duty, Excise Duty, and EMTL recorded decreases during the month, even as VAT, Oil and Gas Royalty, and CET levies boosted overall revenue.
Credit: thenationonlineng.net
