FAAC Allocation Hits Historic Peak As FG, States, LGs Share ₦2.225trn
The Federation Account Allocation Committee (FAAC) on Wednesday announced the distribution of a record-breaking ₦2.225 trillion to the federal, state, and local governments for August 2025, the highest disbursement ever made from the federation account.
The figure, contained in a communiqué issued after the FAAC meeting in Abuja, was buoyed by higher inflows from oil and gas royalties, value-added tax (VAT), and Common External Tariff (CET) charges.
According to the breakdown, ₦1.478 trillion of the total amount 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 rate gains.
From the statutory revenue, the federal government received ₦684.462 billion, states got ₦347.168 billion, while local government councils collected ₦267.652 billion.
Oil-producing states were allocated ₦179.311 billion as 13 percent derivation revenue.
The VAT pool of ₦672.903 billion was shared as follows: federal government, ₦100.935 billion; states, ₦336.452 billion; and local councils, ₦235.516 billion. From the EMTL fund, the federal government received ₦4.851 billion, states ₦16.169 billion, and local governments ₦11.318 billion.
Out of the ₦41.284 billion generated from exchange rate differences, the federal government got ₦19.799 billion, states ₦10.042 billion, and local councils ₦7.742 billion, while ₦3.701 billion went to oil-producing states as part of their 13 percent derivation entitlement.
The communiqué further disclosed that the federation’s total revenue for August stood at ₦3.635 trillion. However, ₦124.839 billion was deducted to cover collection costs, while ₦1.285 trillion was set aside for transfers, interventions, refunds, and savings.
Sodiq Lawal is a passionate and dedicated journalist with a knack for uncovering captivating stories in the bustling metropolis of Osun State and Nigeria at large. He has a versatile reporting style, covering a wide range of topics, from politics , campus, and social issues to arts and culture, seeking impact in all facets of the society.
