Nigeria’s three tiers of government – federal, state, and local – collectively shared the highest revenue of N2.225 trillion for August 2025, marking a significant increase from the N2.001 trillion allocated in the preceding month. This record allocation was disclosed by the Federation Account Allocation Committee (FAAC) following its monthly meeting for September, as communicated by Mohammed Manga, Director, Information and Public Relations, Federal Ministry of Finance.

The total distributable revenue for August stood at N2,225.118 trillion. This sum was composed of N1,478.593 billion from statutory revenue, N672.903 billion from Value Added Tax (VAT) revenue, N32.338 billion from Electronic Money Transfer Levy (EMTL), and N41.284 billion from Exchange Difference. The total gross revenue available in August 2025 reached N3,635.802 trillion.

Before distribution, a total of N124.839 billion was deducted for the cost of collection, while N1,285.845 billion was set aside for transfers, interventions, refunds, and savings. From the overall N2.225 trillion distributable revenue, the Federal Government received a total of N810.047 billion. The 36 State Governments collectively received N709.831 billion, and the Local Government Councils were allocated N522.228 billion. Additionally, oil-producing states received N183.012 billion as 13 percent derivation revenue from mineral resources.

A detailed breakdown of the revenue components reveals that the gross statutory revenue received in August 2025 was N2,838.214 trillion, which was N231.913 billion lower than the N3,070.127 trillion received in July. After deducting N94.587 billion for cost of collection and N1,265 billion for transfers, intervention, and refunds, the balance of N1,478.593 billion statutory revenue was distributed. From this, the Federal Government received N684.462 billion, State Governments got N347.168 billion, and Local Government Councils received N267.652 billion, with N179.311 billion going to benefiting states as derivation revenue.

The gross revenue from Value Added Tax (VAT) in August was N722.619 billion, reflecting an increase of N34.679 billion compared to N687.940 billion in the preceding month. After N28.905 billion was allocated for cost of collection and N20.811 billion for transfers, intervention, and refunds, the remaining N672.903 billion distributable VAT revenue was shared: N100.935 billion to the Federal Government, N336.452 billion to State Governments, and N235.516 billion to Local Government Councils.

From the Electronic Money Transfer Levy (EMTL), a gross sum of N33.685 billion was collected. After N1.347 billion was deducted for the cost of collection, the distributable sum of N32.338 billion was allocated as follows: N4.851 billion to the Federal Government, N16.169 billion to State Governments, and N11.318 billion to Local Government Councils. For the N41.284 billion from Exchange Difference, the Federal Government received N19.799 billion, State Governments N10.042 billion, Local Government Councils N7.742 billion, and N3.701 billion was shared with benefiting states as derivation revenue.

Regarding revenue performance, Oil & Gas Royalty, Value Added Tax (VAT), and CET levies witnessed significant increases. Conversely, Petroleum Profit Tax (PPT), Import Duty, Electronic Money Transfer Levy (EMTL), Companies Income Tax (CIT), and Excise Duty all recorded decreases during the period.

The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, who chaired the FAAC meeting, commended the diligent efforts of the committee in ensuring effective resource allocation. He noted that the economic reforms initiated by the Federal Government are yielding positive results and expressed optimism about the future of Nigeria's economy, urging prudent management of public resources to meet citizens' needs.