FG, states, LGs share record ₦2.2tn in August

Nigeria’s federal, state, and local governments jointly received ₦2.2 trillion as revenue allocation for August 2025, marking the highest monthly distribution to date.

The amount surpassed the ₦2.001 trillion shared in July, according to a communiqué released by the Federation Account Allocation Committee (FAAC) on Wednesday.

Out of the ₦2.225 trillion distributable pool, allocations came from:

• ₦1.478 trillion in statutory revenue,
• ₦672.903 billion from Value Added Tax (VAT),
• ₦32.338 billion from the Electronic Money Transfer Levy (EMTL), and
• ₦41.284 billion from exchange rate gains.

Overall, gross revenue for the month stood at ₦3.635 trillion, from which ₦124.839 billion was deducted as collection costs and ₦1.285 trillion was set aside for transfers, interventions, refunds, and savings.

VAT collections rose to ₦722.619 billion in August, up ₦34.679 billion compared to ₦687.940 billion in July.

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Revenue Distribution

• From the statutory revenue of ₦1.478 trillion:
  • Federal Government: ₦684.462 billion
  • State Governments: ₦347.168 billion
  • Local Governments: ₦267.652 billion
  • Derivation (13% of mineral revenue): ₦179.311 billion
• From the ₦672.903 billion VAT pool:
  • Federal Government: ₦100.935 billion
  • State Governments: ₦336.452 billion
  • Local Governments: ₦235.516 billion
• From the ₦32.338 billion EMTL:
  • Federal Government: ₦4.851 billion
  • State Governments: ₦16.169 billion
  • Local Governments: ₦11.318 billion
• From the ₦41.284 billion exchange difference:
  • Federal Government: ₦19.799 billion
  • State Governments: ₦10.042 billion
  • Local Governments: ₦7.742 billion
  • Derivation (13% of mineral revenue): ₦3.701 billion

Gross statutory revenue came in at ₦2.838 trillion for August, a drop of ₦231.913 billion from the ₦3.070 trillion recorded in July.

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The communiqué highlighted that while oil and gas royalties, VAT, and CET levies saw notable growth, other revenue streams such as Petroleum Profit Tax (PPT), Import Duty, EMTL, Companies Income Tax (CIT), and Excise Duty experienced declines.