“FAAC DISBURSES N2.225 TRILLION TO FG, STATES, LGAs FOR AUGUST 2025”
GREATRIBUNETVNEWS–THE Federation Account Allocation Committee (FAAC), chaired by Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has distributed N2.225 trillion to the three tiers of government for August 2025. The allocation breakdown includes:
Key Highlights:
– Federal Government: N810.047 billion
– States: N709.831 billion
– Local Government Councils: N522.228 billion
– Oil Producing States: N183.012 billion (13% derivation)
The FAAC meeting also allocated N124.839 billion for collection costs and N1.285 trillion for transfers, interventions, and refunds .
A communique issued by the Federation Account Allocation Committee indicated that the Gross Revenue available from the Value Added Tax (VAT) for the month of August 2025, was N722.619 Billion as against N687.940 Billion distributed in the preceeding month, resulting in an increase of N34.679 Billion.
From that amount, the sum of N28.905 billion was allocated for the cost of collection and the sum of N20.811 billion given for Transfers, Intervention and Refunds. The remaining sum of N672.903 Billion was distributed to the three of tiers of government, of which the Federal Government got N100.935 Billion, the States received N336.452 Billion and Local Government Councils got N235.516 billion.
Accordingly, the Gross Statutory Revenue of N2.838 Trillion received for the month was lower than the sum of N3.070 Trillion received in the previous month by N231.913 Billion .
From the stated amount, the sum of N94.587 billion was allocated for the cost of collection and a total sum of N1.265 Trillion for Transfers, Intervention and Refunds.
The remaining balance of N1.478 trillion was distributed as follows to the three tiers of government: Federal Government got the sum of N684.462 Billion, States received N347.168 Billion, the sum of N267.652 Billion was allocated to LGCs and N179.311 Billion was given to Derivation Revenue (13% Mineral producing States).
Also, the sum of N33.685 billion from Electronic Money Transfer Levy (EMTL) was distributed to the three (3) tiers of government as follows: the Federal Government received N4.851 Billion, States got N16.169 Billion, Local Government Councils received N11. 318 Billion,
while N1.347 Billion was allocated for Cost of Collection.
The communique also mentioned the sum of N41.284 billion from Exchange Difference which was distributed to the three tiers of Government as follows: Federal government got N19.799 Billion, the State received N10.042 Billion, the LGCs got N7.742 Billion, while the Oil producing States received N3.701 Billion.
Oil and Gas Royalty, Value Added Tax ( VAT) and CET Levies increased significantly, while Petroleum Profit Tax (PPT), Import Duty, Electronic Money Transfer Levy (EMTL), Companies Income Tax (CIT) and Excise Duty recorded decreases.
According to the Communique, the total revenue distributable for the current month of August 2025, was drawn from Statutory Revenue of N1.478 Trillion, Value Added Tax (VAT) of N672.903 Billion, N32.338 Billion from Electronic Money Transfer Levy (EMTL), and the sum of N41.284 Billion from Exchange Difference, bringing the total distributable amount for the month to N2.225 Trillion.
Ealier, in his opening remarks, the Minister of Finance commended the FAAC Committee for it’s diligent in ensuring the effective allocation of resources to the various tiers of government.
He noted that the economic reforms embarked upon by the Federal Government are yielding positive results and that our collective efforts will continue to drive growth and development.
The Minister assured that better days are ahead and expressed optimism about the future of our economy.
“As we continue to work together, I urge us to prioritize prudent management of public resources, ensuring that our nation’s wealth is utilized effectively to meet the needs of our citizens”, Edun emphasized
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