FAAC smashes records with N2.225trn disbursements for August

The Federation Account Allocation Committee (FAAC) has made a historic disbursement of N2.225 trillion in federation revenue for August 2025.

This is the largest allocation ever made to Nigeria’s three tiers of government and other statutory recipients. It also marks the second consecutive month that the FAAC distribution has surpassed the N2 trillion mark, signalling a strong surge in government revenues under President Bola Tinubu’s administration.

The August disbursement, which took place at the FAAC meeting in Abuja, was propelled by increases in several key revenue sources, including oil and gas royalties, value-added tax (VAT), and common external tariff (CET) levies, according to a communiqué issued at the conclusion of the meeting.

The breakdown of the N2.225 trillion distributed includes N1.478 trillion 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.

Notably, the total gross federation revenue for the month stood at a substantial N3.635 trillion. From this amount, N124.839 billion was deducted as the cost of collection, while N1.285 trillion was allocated for transfers, interventions, refunds, and savings.

The disbursements were shared as follows: the Federal Government received N684.462 billion from statutory revenue, while State Governments were allocated N347.168 billion, and Local Government Councils received N267.652 billion. Additionally, oil-producing states received N179.311 billion as derivation revenue—13 per cent of the mineral revenue.

VAT revenue of N672.903 billion was divided with the Federal Government receiving N100.935 billion, States getting N336.452 billion, and Local Governments being allocated N235.516 billion. EMTL revenue distribution saw the Federal Government receiving N4.851 billion, States N16.169 billion, and Local Governments N11.318 billion.

Finally, the N41.284 billion from exchange differences was distributed with the Federal Government receiving N19.799 billion, States getting N10.042 billion, and Local Governments being allocated N7.742 billion. The oil-producing states also received an additional N3.701 billion as derivation revenue.