Nigeria’s Federation Account Allocation Committee (FAAC) on Wednesday shared and distributed a whooping sum of N2.225 trillion to the Federal Government, 36 states, FCT and 774 local government councils as revenue for August 2025.
The amount represents 11.2 per cent , approximately N224.118 billion increase compared to the N2.001 trillion shared in July 2025.
The announcement was made on Wednesday in Abuja, following the FAAC meeting chaired by the Office of the Accountant General of the Federation.
A statement released by Bawa Mokwa, Director of Press and Public Relations, confirmed the allocation and provided a detailed revenue breakdown.
This latest allocation marks the third consecutive month of rising shared revenues, reflecting a trend of steady fiscal growth.
According to the statement, the total distributable revenue of N2.225 trillion included N1.478 trillion from statutory sources.
Other components were 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 gains.
In total, N3.635 trillion gross revenue was available for sharing in August, but N124.839 billion was deducted for collection costs.
An additional N1.285 trillion was set aside for transfers, interventions, refunds, and savings, reducing the final distributable figure.
Of the N1.478 trillion statutory revenue, the Federal Government received N684.462 billion, states got N347.168 billion, and local government councils received N267.652 billion.
Oil-producing states received N179.311 billion as 13 per cent derivation from statutory revenue, maintaining their special allocation under Nigeria’s fiscal federalism.
From the VAT pool of N672.903 billion, the Federal Government took N100.935 billion, while states and local governments received N336.452 billion and N235.516 billion respectively.
Revenue from EMTL, totaling N32.338 billion was shared as follows: N4.851 billion to the Federal Government, N16.169 billion to states, and N11.318 billion to local councils.
The N41.284 billion Exchange Difference was also distributed, with the Federal Government receiving N19.799 billion, states N10.042 billion, and local governments N7.742 billion.
Oil-producing states got an additional N3.701 billion from the exchange difference as derivation, further boosting their revenue for the month.
Despite the increased allocation, the gross statutory revenue in August at N2.838 trillion, was lower than July’s N3.070 trillion, reflecting a decline of N231.913 billion.
Conversely, VAT collection rose by N34.679 billion to N722.619 billion in August, compared to N687.940 billion in July.
FAAC noted that revenue growth was driven by higher receipts from oil and gas royalties, VAT, and Common External Tariff (CET) levies.
However, collections from Petroleum Profit Tax, Import Duty, Companies Income Tax, Excise Duty, and EMTL saw noticeable declines.
This mixed revenue performance indicates a fragile recovery in government earnings, with non-oil sectors increasingly shouldering fiscal responsibilities.
President Bola Tinubu had earlier in September confirmed that Nigeria met its 2025 revenue target in August, attributing the achievement to improved non-oil revenue.
This aligns with recent government efforts to diversify the economy away from oil dependency, a policy long touted but now showing measurable results.
With oil receipts still underperforming, the uptick in VAT and royalties suggests that domestic consumption and upstream operations are partially filling the gap.
However, the dip in corporate and import-related taxes may hint at broader economic challenges, including sluggish business activity and weaker international trade flows.
The steady monthly increases in allocations are welcome, but analysts caution that inflation, exchange rate volatility, and debt servicing pressures may offset fiscal gains.