The Federation Account Allocation Committee (FAAC), at its September 2025 meeting, chaired by the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, allocated N2.225 trillion to the three tiers of government as federation allocation for August 2025 from a gross total of N3.635 trillion.
From the stated amount, inclusive of gross statutory revenue, Value Added Tax (VAT), electronic money transfer levy, and exchange rate gain, the federal government received N810.047 billion, the states got N709.831 billion, and local government areas got N522.228 billion. Oil-producing states were given N183.012 gillion as derivation (13% of mineral revenue).
N124.839 billion was allocated for the cost of collection, while N1.285 trillion was allocated for transfers, Interventions, and refunds.
A statement issued by the Federal Ministry of Finance indicated that the gross revenue available from the VAT for the month of August 2025 was N722.619 billion, as against N687.940 billion distributed in the preceding month, resulting in an increase of N34.679 billion.
From that amount, N28.905 billion was allocated for the cost of collection to revenue-generating agencies, and N20.811 billion was given for transfers, Interventions, and refunds.
The remaining sum of N672.903 billion was distributed to the three tiers of government, of which the federal Government received N100.935 billion, the states received N336.452 billion, and the LGAs received N235.516 billion.
Accordingly, the statutory revenue of N2.838 trillion received for the month was N231.913 trillion lower than the sum of N3.070 trillion received in the previous month.
From the stated amount, N94.587 trillion was allocated for the cost of collection, and N1.265 trillion was allocated for transfers, intervention, and refunds.
The remaining balance of N1.478 trillion was distributed to the three tiers of government: the FG received N684.462 billion, the States received N347.168 billion, N267.652 billion was allocated to LGAs, and N179.311 billion was given to Derivative Revenue (13% mineral-producing states).
Also, the sum of N33.685 billion from money transfers was distributed to the three tiers of government as follows: the Federal government received N4.851 billion, states got N16.169 billion, LGAs received N11. 318 billion, and N1.347 billion was allocated for the cost of collection.
The statement mentioned the sum of N41.284 billion from exchange difference, which was distributed to the three tiers of government as follows: the federal government received N19.799 billion, the state received N10.042 billion, the LGAs received N7.742 billion, and the oil-producing States received N3.701 billion.
Oil and gas royalty, VAT, and CET levies increased significantly, while petroleum profit tax, import duty, electronic money transfer, companies’ income tax and excise duty recorded decreases.
The total revenue distributable for the current month of August 2025 was drawn from statutory revenue of N1.478 trillion, VAT of N672.903 billion, N32.338 billion from money transfer levy, and the sum of N41.284 billion from exchange difference, bringing the total distributable amount for the month to N2.225 trillion.
In his opening remarks, the Minister of Finance commended the FAAC committee for its diligent efforts in ensuring the effective allocation of resources to the various tiers of government.
He noted that the federal government’s economic reforms are yielding positive results and that our collective efforts will continue to drive growth and development.
The Minister assured us that better days would come and expressed optimism about the future of our economy. “As we continue to work together, I urge us to prioritise prudent management of public resources, ensuring that our nation’s wealth is utilised effectively to meet the needs of our citizens,” Edun emphasised.
