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 of ₦2.225 trillion to the three tiers of government as federation allocation for August 2025, from a gross revenue of ₦3.635 trillion.
From the total amount—comprising gross statutory revenue, Value Added Tax (VAT), electronic money transfer levy, and exchange rate gain—the federal government received ₦810.047 billion, the states ₦709.831 billion, local government areas ₦522.228 billion, while oil-producing states got ₦183.012 billion as derivation (13% of mineral revenue).
The sum of ₦124.839 billion was earmarked for the cost of collection, while ₦1.285 trillion was allocated for transfers, interventions, and refunds.
A statement by the Federal Ministry of Finance disclosed that gross VAT revenue available in August stood at ₦722.619 billion, compared to ₦687.940 billion in July—an increase of ₦34.679 billion. From this, ₦28.905 billion was set aside for the cost of collection, and ₦20.811 billion for transfers, interventions, and refunds. The balance of ₦672.903 billion was distributed among the three tiers of government, with the federal government receiving ₦100.935 billion, states ₦336.452 billion, and LGAs ₦235.516 billion.
However, statutory revenue for August dropped to ₦2.838 trillion from ₦3.070 trillion in July, representing a decline of ₦231.913 billion. From this, ₦94.587 billion was allocated for the cost of collection, and ₦1.265 trillion for transfers, interventions, and refunds. The remaining ₦1.478 trillion was distributed as follows: federal government ₦684.462 billion, states ₦347.168 billion, LGAs ₦267.652 billion, and derivation revenue ₦179.311 billion to oil-producing states.
Similarly, ₦33.685 billion from the electronic money transfer levy was shared, with the federal government getting ₦4.851 billion, states ₦16.169 billion, LGAs ₦11.318 billion, and ₦1.347 billion set aside for collection costs.
In addition, ₦41.284 billion from exchange rate gains was distributed, with the federal government receiving ₦19.799 billion, states ₦10.042 billion, LGAs ₦7.742 billion, and oil-producing states ₦3.701 billion.
The statement added that while oil and gas royalties, VAT, and CET levies recorded significant increases, petroleum profit tax, import duty, electronic money transfer, companies income tax, and excise duty all witnessed declines during the month.
Overall, the distributable revenue for August 2025 was drawn from statutory revenue of ₦1.478 trillion, VAT of ₦672.903 billion, ₦32.338 billion from the electronic money transfer levy, and ₦41.284 billion from exchange difference—bringing the total allocation to ₦2.225 trillion.
Earlier in his remarks, the Minister of Finance commended FAAC for its diligent efforts in ensuring effective allocation of resources to the various tiers of government.
He noted that the economic reforms embarked upon by the Federal Government were yielding results, stressing that collective effort remained key to national development.
“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.
