By Ikugbadi Oluwasegun
The Federation Account Allocation Committee (FAAC) has distributed N2.225 trillion as federal revenue for August 2025, marking the largest allocation ever to the three levels of government and other statutory beneficiaries.
The communiqué released following the August 2025 FAAC meeting in Abuja highlighted that the revenue was boosted by higher collections from oil and gas royalties, value-added tax (VAT), and common external tariff (CET) fees.
According to FAAC, out of the overall N2.225 trillion available for distribution, N1.478 trillion was attributed to statutory revenue, N672.903 billion originated from VAT, N32.338 billion was generated through the Electronic Money Transfer Levy (EMTL), and N41.284 billion resulted from Exchange Difference.
The communiqué disclosed that the total revenue for the federation that month amounted to N3.635 trillion. Out of this sum, N124.839 billion was subtracted to cover collection costs, and N1.285845 trillion was allocated for transfers, interventions, refunds, and savings.
From the statutory revenue of N1.478 trillion, the distribution was as follows: the Federal Government was allocated N684.462 billion, State Governments received N347.168 billion, and Local Government Councils were granted N267.652 billion. Additionally, N179.311 billion, which represents 13 percent of mineral revenue, was provided to oil-producing states as derivation revenue.
Out of the N672.903 billion available from VAT revenue, the Federal Government was allocated N100.935 billion, the states received N336.452 billion, and the local governments were granted N235.516 billion.
From the EMTL fund distribution totaling N32.338 billion, the Federal Government was allocated N4.851 billion, while the States received N16.169 billion, and the Local Governments were given N11.318 billion.
From the N41.284 billion resulting from exchange rate differences, the federal government was allocated N19.799 billion. The states were distributed N10.042 billion, and the local governments received N7.742 billion. Additionally, N3.701 billion, representing 13 percent of the mineral revenue, was allocated to the oil-producing states as a derivation payment.
