The Federation Account Allocation Committee (FAAC), at its September 2025 meeting chaired by the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, shared a total sum of N2.225 trillion to the three tiers of government as federation allocation for the month of August 2025 from a gross total of N3.635 trillion.
From the stated amount inclusive of gross statutory revenue, Value Added Tax (VAT), electronic money transfer levy, and exchange rate gain, federal government received N810.047 billion, the states got N709.831 billion, local government areas got N522.228 billion, while oil producing states were given N183.012 billion as derivation (13% of mineral revenue).
The sum of N124.839 billion was given for the cost of collection, while N1.285 trillion was allocated for transfers intervention and refunds.
A statement issued by the Federal Ministry of Finance indicated that the gross revenue available from the VAT for the month of August 2025, was N722.619 billion as against N687.940 billion distributed in the preceeding month, indicating an increase of N34.679 billion.
From that amount, N28.905 billion was allocated for the cost of collection to revenue generating agenciey. The sum of N20.811 billion was given for transfers, intervention and refunds.
The remaining sum of N672.903 billion was distributed to the three of tiers of government, out of which the federal government got N100.935 billion, states received N336.452 billion and LGAs got N235.516 billion.
Accordingly, the statutory revenue of N2.838 trillion received for the month was lower than the sum of N3.070 trillion received in the previous month by N231.913 tillion .
From the stated amount, the sum of N94.587 trillion was allocated for the cost of collection and a total sum of N1.265 trillion for transfers, intervention and refunds.
The remaining balance of N1.478 trillion was distributed to the three tiers of government with the federal government getting N684.462 billion, states, N347.168 billion while the sum of N267.652 billion was allocated to LGAs and N179.311 billion was given to Derivation Revenue (13% mineral producing states).
Also, the sum of N33.685 billion from money transfer was distributed to the three tiers of government with the federal government receiving N4.851 billion, states, N16.169 billion and LGAs receiving N11. 318 billion, while N1.347 billion was allocated for cost of collection.
The statenent added that the sum of N41.284 billion from exchange difference was distributed to the three tiers of government with the federal government getting N19.799 billion, states, N10.042 billion; LGAs, N7.742 billion while oil producing States received N3.701 billion.
Oil and gas royalty, VAT and CET levies increased significantly, while petroleum profit tax, import duty, electronic money transfer, companies income tax and excise duty recorded decreases in August.
The total revenue distributable for the current month of August 2025, was drawn from statutory revenue of N1.478 trillion, VAT – N672.903 billion, N32.338 billion from money transfer levy and the sum of N41.284 billion from exchange difference, bringing the total distributable amount for the month to N2.225 trillion.
Ealier, in his opening remarks, the Minister of Finance commended FAAC Committee for its diligent efforts in ensuring the effective allocation of resources to the various tiers of government.
He noted that the economic reforms embarked upon by the Federal Government were yielding positive results and that collective efforts will continue to drive growth and development.
The Minister assured that better days were ahead and expressed optimism about the future of the nation’s economy. “As we continue to work together, I urge us to prioritise prudent management of public resources, ensuring that our nation’s wealth is utilised effectively to meet the needs of our citizens,” Edun stated.
