The Federation Account Allocation Committee (FAAC) has disbursed a total of ₦2.22 trillion to the federal, state, and local governments for the month of August 2025.
The disclosure came from the Federal Ministry of Finance in a statement issued on Wednesday following FAAC’s monthly meeting in Abuja, chaired by Finance Minister Wale Edun.
From the gross revenue of ₦3.63 trillion, the allocations to the three tiers of government are as follows:
- Federal Government – ₦810.05 billion
- State Governments – ₦709.83 billion
- Local Governments – ₦522.23 billion
In addition, ₦183.01 billion was allocated to oil-producing states under the 13% derivation formula, and ₦124.84 billion was earmarked for collection costs.
FAAC also noted that ₦1.28 trillion was set aside for statutory transfers, special interventions, and refunds.
Gross VAT collections in August 2025 rose to ₦722.61 billion, up from ₦687.94 billion in July, representing a ₦34.67 billion increase.
After deducting ₦28.91 billion for collection costs and ₦20.81 billion for interventions and refunds, the balance of ₦672.90 billion was shared as follows:
- Federal Government – ₦100.93 billion
- States – ₦336.45 billion
- Local Governments – ₦235.51 billion
The committee reported that gross statutory revenue dropped to ₦2.83 trillion, compared to ₦3.07 trillion in the previous month — a decline of ₦231.91 billion.
Of that amount:
- ₦94.58 billion was deducted as collection cost
- ₦1.26 trillion went to transfers and refunds
The remaining ₦1.47 trillion was disbursed as follows:
- Federal Government – ₦684.46 billion
- States – ₦347.16 billion
- Local Governments – ₦267.65 billion
- Oil-producing states – ₦179.31 billion (13% derivation)
Electronic Money Transfer Levy and Exchange Gains
The Electronic Money Transfer Levy (EMTL) generated ₦33.68 billion in revenue:
- FG – ₦4.85 billion
- States – ₦16.16 billion
- LGAs – ₦11.31 billion
- Collection cost – ₦1.34 billion
In addition, ₦41.28 billion was generated from exchange difference and distributed as:
- FG – ₦19.79 billion
- States – ₦10.04 billion
- LGAs – ₦7.74 billion
- Oil-producing states – ₦3.70 billion
Mixed Performance in Revenue Sources
FAAC noted significant increases in oil and gas royalties, VAT, and CET levies, while revenues from petroleum profit tax (PPT), import duty, EMTL, company income tax (CIT), and excise duty saw declines.
Summary: August 2025 Distributable Revenue Sources
- Statutory Revenue: ₦1.47 trillion
- VAT: ₦672.90 billion
- EMTL: ₦32.33 billion
- Exchange Difference: ₦41.28 billion
Total Distributable: ₦2.22 trillion
Minister Edun Urges Prudent Resource Management
Finance Minister Wale Edun, who presided over the FAAC session, applauded committee members for their commitment to transparency and efficiency in resource allocation.
“Better days are ahead,” Edun said. “Let us prioritise prudent management of public funds to ensure our nation’s wealth is used effectively for the benefit of all citizens.”
He added that the reforms introduced by the Tinubu-led administration were beginning to yield positive fiscal outcomes.
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