Nigeria’s Federation Account Allocation Committee (FAAC) has shared the highest revenue ever among the federal, state, and local governments, as well as other statutory recipients. This marks the second month in a row that FAAC disbursements have crossed the ₦2 trillion mark.

The August 2025 meeting in Abuja revealed that the rise in revenue was boosted by oil and gas royalties, VAT collections, and common external tariff (CET) levies.

According to the communiqué, ₦2.225 trillion was distributed out of a total revenue of ₦3.635 trillion generated during the month. After deducting ₦124.839 billion for collection costs and ₦1.285 trillion for transfers, interventions, refunds, and savings, the balance was shared.

Breakdown of the Allocation

• Statutory Revenue (₦1.478 trillion)
  
  • FG: ₦684.462 billion
  • States: ₦347.168 billion
  • LGAs: ₦267.652 billion
  • Derivation (13% for oil-producing states): ₦179.311 billion
• VAT (₦672.903 billion)
  
  • FG: ₦100.935 billion
  • States: ₦336.452 billion
  • LGAs: ₦235.516 billion
• Electronic Money Transfer Levy (₦32.338 billion)
  
  • FG: ₦4.851 billion
  • States: ₦16.169 billion
  • LGAs: ₦11.318 billion
• Exchange Difference (₦41.284 billion)
  
  • FG: ₦19.799 billion
  • States: ₦10.042 billion
  • LGAs: ₦7.742 billion
  • Derivation (13% for oil-producing states): ₦3.701 billion

This record allocation is expected to provide more fiscal space for all tiers of government to fund projects, settle obligations, and invest in public services.