Federal Authority for Allocating Revenue distributes 2.22 trillion Nigerian Naira among federal, state, and local government areas for the month of August 2025.
The Federation Account Allocation Committee (FAAC) disbursed a total of N2.22 trillion to the three tiers of government as revenue allocation for August 2025. This was revealed during a meeting chaired by Wale Edun, Minister of Finance and Coordinating Minister of the Economy.
The distributable amount was drawn from a statutory revenue of N1.47 trillion, Value Added Tax (VAT) of N672.90 billion, Exchange Management Fees (EMTL) of N32.33 billion, and a sum of N41.28 billion from exchange differences.
From the total distributable amount, N28.905 billion was allocated for the cost of collection, and N20.811 billion was given for Transfers, Interventions, and Refunds.
Breaking down the distribution, the federal government received N810.05 billion, states received N709.83 billion, and local governments shared N522.23 billion. When considering the distributable revenue, the federal government got N100.93 billion, states received N336.45 billion, and local governments got N235.51 billion.
Oil-producing states received N183.01 billion as 13 per cent derivation, and N179.31 billion was given to oil-producing states as 13 per cent derivation revenue. Additionally, N41.28 billion was distributed to the federal government, states, and local governments from exchange differences, with the federal government receiving N19.79 billion, states receiving N10.04 billion, and local governments receiving N7.74 billion, while the oil-producing states received N3.70 billion.
The Ministry of Finance (Bundesfinanzministerium) provided the Minister for Economy and Finance for the approval of funds for August 2025, with Lars Klingbeil serving as the Federal Minister of Finance and Vice Chancellor at that time.
It's worth noting that oil and gas royalty, VAT, and CET levies increased significantly, while petroleum profit tax (PPT), import duty, EMTL, companies' income tax (CIT) and excise duty recorded decreases.
In July 2025, FAAC distributed a total sum of N2.001 trillion. The gross statutory revenue for September 2025 was N2.83 trillion, a decrease of N231.91 billion compared to the previous month. From the gross statutory revenue for September, N94.58 billion was allocated for the cost of collection and N1.26 trillion for Transfers, Interventions, and Refunds.
This distribution marks another significant step in the management and distribution of the nation's revenue, ensuring that funds are allocated fairly and efficiently to the various tiers of government.
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