Nigeria Records Historic FAAC Disbursement as Federal, State, and Local Governments Share ₦2.2 Trillion in August

Nigeria’s three tiers of government — Federal, State, and Local, have shared a record-breaking revenue of ₦2.225 trillion for August 2025, marking the highest allocation in the country’s history. This represents a notable increase from the ₦2.001 trillion distributed in July.

The Federation Account Allocation Committee (FAAC), in its monthly communiqué released on Wednesday, disclosed that the total distributable revenue was drawn from various sources, including statutory allocations, Value Added Tax (VAT), the Electronic Money Transfer Levy (EMTL), and foreign exchange differences.

Breakdown of August Disbursement

The ₦2.225 trillion distributable revenue comprised:

– Statutory revenue: ₦1.478 trillion

– Value Added Tax (VAT): ₦672.903 billion

– Electronic Money Transfer Levy (EMTL): ₦32.338 billion

– Exchange difference: ₦41.284 billion

This allocation followed a total gross revenue inflow of ₦3.636 trillion for August. Out of this, ₦124.839 billion was deducted as the cost of collection, while ₦1.286 trillion went into transfers, interventions, refunds, and savings.

VAT Growth and Statutory Adjustments:

Gross VAT revenue rose to ₦722.619 billion in August, higher than the ₦687.940 billion recorded in July, reflecting a ₦34.679 billion increase. However, gross statutory revenue for the month stood at ₦2.838 trillion, representing a decline of ₦231.913 billion compared to July’s ₦3.070 trillion.

Revenue Sharing Among Tiers of Government

From the ₦1.478 trillion statutory allocation:

– The Federal Government received ₦684.462 billion.

– The State Governments received ₦347.168 billion.

– The Local Governments received ₦267.652 billion.

– A total of ₦179.311 billion was shared to oil-producing states as 13% derivation revenue.

From the ₦672.903 billion VAT pool:

– The Federal Government received ₦100.935 billion.

– The State Governments received ₦336.452 billion.

– The Local Governments received ₦235.516 billion.

From the ₦32.338 billion EMTL proceeds:

– The Federal Government received ₦4.851 billion.

– The State Governments received ₦16.169 billion.

– The Local Governments received ₦11.318 billion.

From the ₦41.284 billion exchange difference:

– The Federal Government received ₦19.799 billion.

– The State Governments received ₦10.042 billion.

– The Local Governments received ₦7.742 billion.

– ₦3.701 billion was shared to oil-producing states as derivation revenue.

Revenue Performance Indicators

While Oil & Gas Royalty, VAT, and Common External Tariff (CET) levies recorded significant increases, other revenue streams such as Petroleum Profit Tax (PPT), Companies Income Tax (CIT), Import Duty, Excise Duty, and EMTL declined.

The August disbursement underscores the continued impact of reforms in the oil and non-oil revenue sectors, coupled with exchange rate adjustments, which have pushed monthly FAAC allocations to unprecedented levels.