During the September 2025 session of the Federation Account Allocation Committee (FAAC), led by the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, a total of N2.225 trillion was distributed among the federal, state, and local governments as the federation allocation for August 2025. This allocation was derived from an overall gross revenue of N3.635 trillion.
This total, which encompasses gross statutory revenue, Value Added Tax (VAT), electronic money transfer levies, and gains from exchange rate fluctuations, was apportioned with the federal government receiving N810.047 billion, states obtaining N709.831 billion, and local government areas (LGAs) allocated N522.228 billion. Additionally, oil-producing states were granted N183.012 billion as their 13% derivation from mineral revenue.
Out of the total, N124.839 billion was set aside to cover collection costs, while N1.285 trillion was earmarked for transfers, interventions, and refunds.
The Federal Ministry of Finance released a statement highlighting that VAT gross revenue for August 2025 stood at N722.619 billion, marking an increase of N34.679 billion compared to the N687.940 billion distributed in July 2025.
From this VAT revenue, N28.905 billion was allocated to revenue-collecting agencies to cover collection expenses, and N20.811 billion was designated for transfers, interventions, and refunds.
The balance of N672.903 billion was then shared among the three government tiers: the federal government received N100.935 billion, states were allocated N336.452 billion, and LGAs got N235.516 billion.
Statutory revenue for the month totaled N2.838 trillion, which was N231.913 billion less than the N3.070 trillion recorded in the previous month.
Within this amount, N94.587 billion was used to cover collection costs, and N1.265 trillion was allocated for transfers, interventions, and refunds.
The remaining N1.478 trillion was distributed as follows: the federal government received N684.462 billion, states were given N347.168 billion, LGAs obtained N267.652 billion, and oil-producing states received N179.311 billion as their 13% derivation.
Furthermore, N33.685 billion collected from money transfer levies was shared among the tiers: the federal government got N4.851 billion, states received N16.169 billion, LGAs were allocated N11.318 billion, and N1.347 billion was reserved for collection costs.
The statement also detailed that N41.284 billion from exchange rate differences was distributed with the federal government receiving N19.799 billion, states N10.042 billion, LGAs N7.742 billion, and oil-producing states N3.701 billion.
Notably, revenues from oil and gas royalties, VAT, and Common External Tariff (CET) levies saw significant growth, whereas petroleum profit tax, import duties, electronic money transfer levies, companies’ income tax, and excise duties experienced declines.
The total distributable revenue for August 2025 was composed of statutory revenue amounting to N1.478 trillion, VAT revenue of N672.903 billion, N32.338 billion from money transfer levies, and N41.284 billion from exchange rate differences, culminating in a total allocation of N2.225 trillion.
In his introductory remarks, Minister Wale Edun praised the FAAC committee for their commitment to ensuring the timely and equitable distribution of funds across all government levels.
He emphasized that ongoing economic reforms by the federal government are beginning to bear fruit, fostering sustainable growth and development nationwide.
Expressing confidence in the nation’s economic trajectory, the Minister urged all stakeholders to maintain fiscal discipline and prioritize the efficient use of public resources to enhance the welfare of citizens. “Our continued collaboration and prudent management of the nation’s wealth are essential to securing a prosperous future for all Nigerians,” Edun concluded.
