The Federation Account Allocation Committee (FAAC) has disbursed ₦2.225 trillion to the three tiers of government for August 2025, marking the highest revenue allocation in Nigeria’s history.

The amount, which also represents the second consecutive month of allocations above ₦2 trillion, was shared among the federal, state, and local governments, alongside statutory recipients.

Revenue Sources

The disbursement was drawn from multiple revenue streams, including:

Statutory revenue: ₦1.48 trillion

Value Added Tax (VAT): ₦672.9 billion

Electronic Money Transfer Levy (EMTL): ₦32.3 billion

Exchange difference: ₦41.3 billion

Distribution

From statutory revenue, the Federal Government received ₦684.46 billion, states got ₦347.17 billion, local governments collected ₦267.65 billion, while oil-producing states earned ₦179.31 billion as derivation.

VAT proceeds were shared with the Federal Government receiving ₦100.94 billion, states ₦336.45 billion, and local governments ₦235.52 billion. EMTL distribution saw the Federal Government take ₦4.85 billion, states ₦16.17 billion, and local governments ₦11.32 billion. From the exchange difference, the Federal Government received ₦19.80 billion, states ₦10.04 billion, local governments ₦7.74 billion, while oil-producing states got an additional ₦3.70 billion.

Drivers of Growth

The surge in allocation was attributed to increased oil and gas royalties, higher VAT collections, and gains from import levies under the Common External Tariff (CET).

This record disbursement is expected to boost liquidity across all levels of government and support the financing of key public services and infrastructure nationwide.