FG, States, LGs Share N2.2 Trillion for August,Records Highest Ever Revenue Allocation

Nigeria’s federal, state, and local governments shared an unprecedented N2.2 trillion revenue for August 2025, the highest allocation on record, according to the Federation Account Allocation Committee (FAAC).

The communiqué released on Wednesday showed that the distributable revenue stood at N2,225.118 trillion, comprising N1,478.593 trillion from statutory revenue, N672.903 billion from Value Added Tax (VAT), N32.338 billion from the Electronic Money Transfer Levy (EMTL), and N41.284 billion from exchange rate differentials.

The total gross revenue available for the month was N3,635.802 trillion, out of which N124.839 billion was deducted as collection costs, while N1,285.845 trillion went to transfers, interventions, refunds, and savings.

For August, VAT collections rose to N722.619 billion, marking an increase of N34.679 billion compared to July’s N687.940 billion.

Breakdown of allocations showed the Federal Government received N684.462 billion, while states received N347.168 billion. Local government councils got N267.652 billion, and oil-producing states shared N179.311 billion as derivation revenue.

From VAT, the Federal Government collected N100.935 billion, states received N336.452 billion, and local governments shared N235.516 billion. For EMTL, N4.851 billion went to the Federal Government, N16.169 billion to states, and N11.318 billion to local governments. Additionally, N41.284 billion from exchange difference was shared, with the Federal Government taking N19.799 billion, states N10.042 billion, and local governments N7.742 billion, while N3.701 billion was given to oil-producing states as derivation.

Despite the record distribution, FAAC noted that gross statutory revenue dropped to N2,838.214 trillion in August from N3,070.127 trillion in July, representing a shortfall of N231.913 billion. While Oil & Gas Royalty, VAT, and CET levies recorded significant increases, Petroleum Profit Tax (PPT), Companies Income Tax (CIT), Import Duty, Excise Duty, and EMTL all declined.