The Federation Account Allocation Committee (FAAC), in its September 2025 meeting presided over by the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, distributed a sum of N2.225 trillion to the three tiers of government as federation allocation for the month of August 2025. It was taken from a gross revenue of N3.635 trillion.
From the allocation, the federal government got N810.047 billion, states got N709.831 billion, and local government areas (LGAs) got N522.228 billion. Oil-producing states also got N183.012 billion as 13% derivation revenue.
The committee utilized N124.839 billion as the cost of collection, and N1.285 trillion was used for transfers, interventions, and refunds.
VAT Revenue
Gross revenue from Value Added Tax (VAT) was N722.619 billion, above the N687.940 billion in July 2025, an increase of N34.679 billion. N28.905 billion was deducted for cost of collection and N20.811 billion for transfers and refunds. The remaining N672.903 billion was shared as follows:
Federal Government: N100.935 billion
States: N336.452 billion
LGAs: N235.516 billion
Statutory Revenue
Statutory revenue in August was N2.838 trillion, down by N231.913 billion from the N3.070 trillion collected in July. Of this, N94.587 billion was lost to the cost of collection and N1.265 trillion to transfers and refunds, leaving N1.478 trillion for sharing:
Federal Government: N684.462 billion
States: N347.168 billion
LGAs: N267.652 billion
Derivation (13% for oil-producing states): N179.311 billion
Other Revenues
Electronic Money Transfer Levy (N33.685 billion):FG – N4.851 billion, States – N16.169 billion, LGAs – N11.318 billion, Cost of Collection – N1.347 billion.
Exchange Difference (N41.284 billion):FG – N19.799 billion, States – N10.042 billion, LGAs – N7.742 billion, Oil-Producing States – N3.701 billion.
The ministry experienced considerable growth in oil and gas royalty, VAT, and CET levies, whereas petroleum profit tax, import duty, electronic money transfer, companies’ income tax, and excise duty fell.
Minister’s Remarks
While making the opening remarks, Mr. Edun commended the committee for the efforts and supplemented that economic reforms by the federal government are starting to pay off. He called on all levels of government to prudently manage public funds and assured citizens that “better days are ahead” as efforts at stabilizing and developing the economy are sustained.
