FAAC Disburses Record N2.225trn Revenue for August

The Federation Account Allocation Committee (FAAC) has shared N2.225 trillion among the federal, state, and local governments as federation revenue for August 2025, the highest monthly disbursement on record.

It is the second consecutive month allocations have exceeded N2 trillion, following July’s N2.01 trillion. The rise was driven by higher Oil and Gas Royalty, Value Added Tax (VAT), and Common External Tariff (CET) levies, FAAC stated in its communiqué.

From the total distributable sum, N1.478 trillion came from statutory revenue, N672.9 billion from VAT, N32.3 billion from the Electronic Money Transfer Levy (EMTL), and N41.3 billion from Exchange Difference.

The Federal Government received N684.5 billion from statutory revenue, while states and local governments got N347.2 billion and N267.7 billion, respectively. Oil-producing states received N179.3 billion as 13% derivation revenue.

From VAT collections, the Federal Government took N100.9 billion, states received N336.5 billion, and councils got N235.5 billion. Of EMTL proceeds, the Federal Government earned N4.9 billion, states N16.2 billion, and councils N11.3 billion. Exchange Difference allocations saw N19.8 billion go to the Federal Government, N10 billion to states, N7.7 billion to councils, and N3.7 billion to oil-producing states.

Despite the record payout, FAAC noted that gross statutory revenue declined to N2.838 trillion in August from N3.070 trillion in July, reflecting a drop of N231.9 billion. Petroleum Profit Tax, Companies Income Tax, Import Duty, Excise Duty, and EMTL revenues all fell, while VAT, royalties, and CET levies strengthened collections.

So far in 2025, allocations have steadily risen: January (N1.703 trillion), February (N1.678 trillion), March (N1.578 trillion), April (N1.681 trillion), May (N1.659 trillion), June (N1.818 trillion), July (N2.001 trillion), and August (N2.225 trillion).