Oritsegbubemi Omatseyin
Lagos — The Federation Account Allocation Committee, FAAC, at its September 2025 meeting chaired by the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, shared N2.225 trillion to the three tiers of government as Federation Allocation for August 2025 from a gross total of N3.635 trillion.
From the stated amount inclusive of Gross Statutory Revenue, Value Added Tax, Electronic Money Transfer Levy, and Exchange Difference, the Federal Government received N810.047 billion, the States received N709.831 billion, and the Local Government Councils got N522.228 billion, while the Oil Producing States received N183.012 billion as Derivation (13% of Mineral Revenue).
The sum of N124.839 billion was given for the cost of collection, while N1.285 trillion was allocated for Transfers Intervention and Refunds.
The Communique issued by the Federation Account Allocation Committee indicated that the Gross Revenue available from the Value Added Tax for the month of August 2025, was N722.619 Billion as against N687.940 Billion distributed in the preceding month, resulting in an increase of N34.679 Billion.
From that amount, the sum of N28.905 Billion was allocated for the cost of collection and the sum of N20.811 Billion given for Transfers, Intervention and Refunds. The remaining sum of N672.903 Billion was distributed to the three tiers of government, of which the Federal Government got N100.935 Billion, the States received N336.452 Billion and Local Government Councils got N235.516 Billion.
Accordingly, the Gross Statutory Revenue of N2.838 Trillion received for the month was lower than the sum of N3.070 Trillion received in the previous month by N231.913 Billion.
From the stated amount, the sum of N94.587 Billion was allocated for the cost of collection and a total sum of N1.265 Trillion for Transfers, Intervention and Refunds.
The remaining balance of N1.478 Trillion was distributed as follows to the three tiers of government: Federal Government got the sum of N684.462 Billion, States received N347.168 Billion, the sum of N267.652 Billion was allocated to LGCs and N179.311 Billion was given as Derivation Revenue (13% Mineral producing States).
Also, the sum of N33.685 Billion from Electronic Money Transfer Levy was distributed to the three tiers of government as follows: the Federal Government received N4.851 Billion, States got N16.169 Billion, Local Government Councils received N11. 318 Billion, while N1.347 Billion was allocated for the Cost of Collection.
The Communique also mentioned the sum of N41.284 Billion from Exchange Difference which was distributed to the three tiers of Government as follows: Federal government got N19.799 Billion, the State received N10.042 Billion, the LGCs got N7.742 Billion, while the Oil producing States received N3.701 Billion.
Oil and Gas Royalty, Value Added Tax and CET Levies increased significantly, while Petroleum Profit Tax, Import Duty, Electronic Money Transfer Levy, Companies Income Tax and Excise Duty recorded decreases.
According to the Communique, the total revenue distributable for the month of August 2025, was drawn from Statutory Revenue of N1.478 Trillion, Value Added Tax of N672.903 Billion, N32.338 Billion from Electronic Money Transfer Levy, and the sum of N41.284 Billion from Exchange Difference, bringing the total distributable amount for the month to N2.225 Trillion.
In his opening remarks, the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, commended the FAAC Committee for their diligent efforts in ensuring the effective allocation of resources to the various tiers of government.
He noted that the economic reforms embarked upon by the Federal Government are yielding positive results and that collective efforts will continue to drive growth and development.
The Minister assured that better days are ahead and expressed optimism about the future of the economy. “As we continue to work together, I urge us to prioritize prudent management of public resources, ensuring that our nation’s wealth is utilized effectively to meet the needs of our citizens,” Edun emphasized.
