Record-Breaking! FAAC Disburses Largest-Ever Allocation To FG, States, LGs — Full Details Inside

The three tiers of government in Nigeria received a record ₦2.225 trillion from the Federation Account Allocation Committee (FAAC) for August 2025.

This marks the largest disbursement ever to federal, state, and local governments, as well as other statutory beneficiaries. According to a communiqué issued after the FAAC meeting in Abuja, the surge in revenue was driven by increased collections from oil and gas royalties, value-added tax (VAT), and common external tariff (CET) charges.

Of the ₦2.225 trillion distributed, ₦1.478 trillion came from statutory revenue, ₦672.903 billion from VAT, ₦32.338 billion from the Electronic Money Transfer Levy (EMTL), and ₦41.284 billion from exchange differences. The communiqué further revealed that the federation’s total revenue for August stood at ₦3.635 trillion, from which ₦124.839 billion was deducted as collection costs and ₦1.285 trillion set aside for transfers, interventions, refunds, and savings.

From the statutory revenue pool, the federal government received ₦684.462 billion, states got ₦347.168 billion, and local councils collected ₦267.652 billion. Oil-producing states also benefited from ₦179.311 billion as 13 percent derivation revenue.

VAT distribution saw the federal government take ₦100.935 billion, states ₦336.452 billion, and local governments ₦235.516 billion. From the EMTL share of ₦32.338 billion, the federal government received ₦4.851 billion, states ₦16.169 billion, and local governments ₦11.318 billion.

The ₦41.284 billion from exchange differences was divided as follows: federal government ₦19.799 billion, states ₦10.042 billion, and local governments ₦7.742 billion. In addition, oil-producing states were allocated ₦3.701 billion as derivation from mineral revenue.