FAAC: FG, states, LGAs shared N2.2trn in August | Statutory revenue dropped by N231bn

The federation account allocation committee (FAAC) says it shared a total of N2.22 trillion among the three tiers of government in August.

The allocation is from a gross total of N3.63 trillion.In a statement on Wednesday, the ministry of finance said the FAAC announced the disbursements at its September meeting in Abuja, chaired by Wale Edun, minister of finance.According to the statement, from the allocation inclusive of gross statutory revenue, value added tax (VAT), electronic money transfer levy (EMTL), and exchange difference, the federal government received N810.05 billion, states got N709.83 billion, while local governments shared N522.23 billion.

FAAC said oil-producing states received N183.01 billion as 13 percent derivation.

The committee also said N124.84 billion was set aside as the cost of collection, while N1.28 trillion went into transfers, interventions and refunds.The communique further said the gross revenue available from the VAT for August, was N722.61 billion as against N687.94 billion distributed in the preceding month, resulting in an increase of N34.67 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,” FAAC said.

“The remaining sum of N672.90 billion was distributed  to the three tiers of government, of which the federal government got N100.93 billion, states received N336.45 billion and local governments got N235.51 billion.”

GROSS STATUTORY REVENUE DROPS BY N231BN

Also, the committee said  gross statutory revenue of N2.83 trillion received for the month was lower than the sum of N3.07 trillion received in the previous month by N231.91 billion.

From the amount, the sum of N94.58 billion was allocated for the cost of collection and a total sum of N1.26 trillion for transfers, intervention and refunds.

Out of the remaining balance of N1.47 trillion federal government received N684.46 billion, states got N347.16 billion, and local governments received N267.65 billion, while N179.31 billion was given to oil-producing states as 13 percent derivation revenue.

FAAC said from the EMT of N33.68 billion, the federal government received N4.85 billion, states got N16.16 billion, local governments received N11.31 billion, while N1.34 billion was allocated for cost of collection.

The communique also said that N41.28 billion from exchange difference was distributed to the federal government (N19.79 billion), states (N10.04 billion), and the LGAs (N7.74 billion), while the oil producing states received N3.70 billion.

In addition, FAAC said oil and gas royalty, VAT and CET levies increased significantly, while petroleum profit tax (PPT), import duty, EMTL, companies income tax (CIT) and excise duty recorded decreases.

According to the Communique, the total revenue distributable for the current month of August 2025, was drawn from statutory revenue of N1.47 trillion, VAT of N672.90 billion, N32.33 billion EMTL, and the sum of N41.28 billion from exchange difference, bringing the total distributable amount for the month to N2.22 trillion.

Speaking at the meeting, Edun commended FAAC members for “their diligent efforts in ensuring the effective allocation of resources to the various tiers of government”.

“Better days are ahead and I urge us to prioritise prudent management of public resources, ensuring that our nation’s wealth is utilised effectively to meet the needs of our citizens,” the minister said.Edun said reforms introduced by the federal government were “yielding positive results”.

FAAC: FG, states, LGAs shared N2.2trn in August | Statutory revenue dropped by N231bn