FAAC disburses record N2.23trn in August, highest revenue allocation in Nigeria’s history

The Federation Account Allocation Committee (FAAC) on Thursday announced the disbursement of N2.225 trillion to the federal, state, and local governments for August 2025 , the highest revenue allocation ever shared in Nigeria’s history, a statement from the committee said.

The August figure, which crossed the N2 trillion threshold for the second month running, was driven by higher inflows from oil and gas royalties, value-added tax (VAT), and common external tariff (CET) levies, according to a communiqué issued at the end of FAAC’s monthly meeting in Abuja.

Gross federation revenue for the month stood at N3.635 trillion. From this, N124.839 billion was deducted as collection costs, while N1.285 trillion was set aside for transfers, interventions, refunds, and savings.

Breakdown of disbursement

Statutory revenue (N1.478 trillion): Federal Government received N684.462 billion, states N347.168 billion, and local governments N267.652 billion. Oil-producing states got N179.311 billion as 13% derivation.

VAT (N672.903 billion): Federal Government received N100.935 billion, states N336.452 billion, and local governments N235.516 billion.

Electronic Money Transfer Levy (N32.338 billion): Federal Government got N4.851 billion, states N16.169 billion, and local governments N11.318 billion.

Exchange difference (N41.284 billion): Federal Government received N19.799 billion, states N10.042 billion, local governments N7.742 billion, while oil-producing states got N3.701 billion as derivation.

FAAC described the allocation as a reflection of improving revenue mobilisation and efficiency, coming at a time when governments at all levels are under pressure to meet developmental obligations and address rising public sector wage demands.