FAAC Shares N2.22tr August 2025 Revenue
By Patience Ikpeme
The Federation Account Allocation Committee (FAAC) has surpassed the N2 trillion disbursement mark for the second consecutive month, sharing a total of N2.225 trillion in August 2025.
This figure, described as the highest ever, was disbursed to the federal, state, and local governments, along with other beneficiaries, at the August FAAC meeting held in Abuja. The revenue windfall was attributed to significant increases in Oil and Gas Royalty, Value Added Tax (VAT), and CET Levies.
A communiqué issued by the FAAC stated that the total distributable revenue of N2,225.118 billion was comprised of several components. These included distributable statutory revenue of N1,478.593 billion, distributable VAT revenue of N672.903 billion, Electronic Money Transfer Levy (EMTL) revenue of N32.338 billion, and Exchange Difference of N41.284 billion.
The communiqué also indicated that a total gross revenue of N3,635.802 billion was available in August, with deductions for cost of collection amounting to N124.839 billion and transfers, interventions, refunds, and savings totaling N1,285.845 billion.
The VAT revenue stream saw a notable increase, with a gross revenue of N722.619 billion in August 2025, which is N34.679 billion more than the N687.940 billion distributed in the preceding month.
From the total distributable statutory revenue of N1,478.593 billion, the Federal Government received N684.462 billion, the State Governments were allocated N347.168 billion, and the Local Government Councils received N267.652 billion. Additionally, the sum of N179.311 billion, representing 13% of mineral revenue, was shared among the benefiting states as derivation revenue.
The N672.903 billion in distributable VAT revenue was allocated as follows: the Federal Government received N100.935 billion, State Governments received N336.452 billion, and Local Government Councils received N235.516 billion. For the Electronic Money Transfer Levy, from the N32.338 billion, the Federal Government received N4.851 billion, State Governments received N16.169 billion, and Local Government Councils received N11.318 billion.
From the N41.284 billion from Exchange Difference, the communiqué stated that the Federal Government received N19.799 billion, the State Governments received N10.042 billion, and the Local Government Councils received N7.742 billion. A further sum of N3.701 billion (13% of mineral revenue) was shared to the benefiting states as derivation revenue.
Despite the record-breaking total disbursement, the gross statutory revenue of N2,838.214 billion received in August 2025 was lower than the N3,070.127 billion received in the previous month, representing a decrease of N231.913 billion.
The communiqué noted that this decline was due to decreases in revenue from Petroleum Profit Tax (PPT), Import Duty, Electronic Money Transfer Levy (EMTL), Companies Income Tax (CIT), and Excise Duty.
