Nigeria’s Federation Account Allocation Committee (FAAC) has shared ₦2.225 trillion to the three tiers of government and statutory bodies for August 2025.
The amount is the highest disbursement ever recorded in Nigeria. It is also the second straight month that allocations have crossed the ₦2 trillion mark, underscoring a strong inflow from oil and non-oil revenues.
According to the communiqué issued after the FAAC meeting in Abuja, gross federation revenue for August stood at ₦3.635 trillion. From this, ₦124.839 billion went to collection costs, while other deductions were made for savings, refunds, and interventions.
The surge was driven by higher receipts from oil and gas royalties, value-added tax (VAT), and common external tariff (CET) levies. “This buoyancy reflects recent improvements in collection efficiency and compliance,” FAAC noted.
How the ₦2.225 Trillion Was Shared
Of the total distributable revenue, ₦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.
From statutory revenue, the Federal Government received ₦684.462 billion, states ₦347.168 billion, and local governments ₦267.652 billion. Oil-producing states got ₦179.311 billion as 13% derivation.
From VAT, the Federal Government received ₦100.935 billion, states ₦336.452 billion, and local councils ₦235.516 billion. From EMTL, the federal share was ₦4.851 billion, states ₦16.169 billion, and councils ₦11.318 billion.
On exchange difference, the Federal Government received ₦19.799 billion, states ₦10.042 billion, local councils ₦7.742 billion, while oil-producing states received ₦3.701 billion as derivation.
With two successive months crossing the ₦2 trillion threshold, the trend should help states pay down the debt burden from previous governments, and meet the yearning infrastructure needs.
However, there are still questions around fiscal sustainability, given rising public debt and high inflation.
Will this surge in allocation ease state governments’ financial burdens, or will debts continue to outpace revenues? Share your views in the comments.
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