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In a landmark financial allocation, Nigeria’s Federal Government, states, and Local Government Councils (LGs) distributed a staggering N2.225 trillion from the federation account for August 2025, marking one of the highest monthly disbursements in recent history.
This significant revenue-sharing reflects Nigeria’s ongoing economic reforms and efforts to optimize resource distribution amid global and domestic economic challenges.
The Federation Account Allocation Committee (FAAC), chaired by the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, finalized the disbursement during its September 2025 meeting in Abuja. According to the FAAC communiqué, the N2.225 trillion comprised N1.478 trillion in statutory revenue, N672.903 billion from Value Added Tax (VAT), N32.338 billion from the Electronic Money Transfer Levy (EMTL), and N41.284 billion from Exchange Difference.
“The total gross revenue available in August was N3.64 trillion. From this amount, N124.84 billion was deducted for collection costs, while N1.29 trillion was set aside for transfers, interventions, refunds, and savings,” the communiqué stated.
The communiqué highlighted a notable increase in VAT revenue, which rose to N722.619 billion in August from N687.94 billion in July, marking a N34.679 billion uptick. “From the N672.903 billion VAT revenue, the Federal Government received N100.935 billion, state governments received N336.452 billion, and LGs received N235.516 billion,” it noted.
From the N1.478 trillion statutory revenue, the Federal Government secured N684.462 billion, states received N347.168 billion, and LGs obtained N267.652 billion. Additionally, oil-producing states were allocated N179.311 billion as 13% derivation revenue.
The EMTL revenue of N32.338 billion was distributed as follows: “The Federal Government received N4.851 billion, states got N16.169 billion, while local government councils received N11.318 billion,” the communiqué reported.
Similarly, from the N41.284 billion Exchange Difference, “the Federal Government received N19.799 billion, state governments received N10.042 billion, and the LGs received N7.742 billion. Oil-producing states got N3.701 billion as derivation revenue.”
The communiqué further revealed that August’s gross statutory revenue of N2.838 trillion was N231.913 billion lower than July’s N3.07 trillion. While oil and gas royalties, VAT, and Common External Tariff (CET) levies saw increases, revenues from Petroleum Profit Tax (PPT), Companies Income Tax (CIT), import duty, EMTL, and excise duty experienced declines.
Mr. Wale Edun, in his remarks, commended FAAC’s diligence, emphasizing that government reforms are driving economic progress.
“Better days are ahead,” he assured, urging prudent resource management across all tiers of government.
This unprecedented allocation, the second consecutive month surpassing N2 trillion, underscores Nigeria’s efforts to strengthen fiscal federalism and address pressing developmental needs across the nation.
Mr. Wale Edun, in his remarks, commended FAAC’s diligence, emphasizing that government reforms are driving economic progress.
“Better days are ahead,” he assured, urging prudent resource management across all tiers of government.
This unprecedented allocation, the second consecutive month surpassing N2 trillion, underscores Nigeria’s efforts to strengthen fiscal federalism and address pressing developmental needs across the nation.
