FG, State, LGAS shared N2.2Trn in August, said Faac

The Federation Account Allocation Committee (FAAC) has revealed that they shared a total of N2.22 trillion among three levels of government in August from a total of N3.63 trillion.

This is contained in a statement on Wednesday, September 17, 2025, by the Ministry of Finance after the September FAAC meeting in Abuja, chaired by Wale Edun, Minister of Finance and the Minister of Coordinating Economics.

This figure reflects an increase in N224.12 billion, or 11.2 percent, compared to N2,001 trillion distributed in July.
According to the statement, from the allocation including gross legal income, value added tax (VAT), electronic money transfer levies (EMTL), and exchange differences, the federal government received N810.05 billion, the state received N709.83 billion, while the local government shared N522.23 billion.

FAAC said the oil -producing state received N183.01 billion as a 13 percent derivation.

The Committee also said N124.84 billion was set aside as a collection fee, while N1.28 trillion entered the transfer, intervention and refund.

Communique further said the gross income available from VAT for August, was the N722.61 billion compared to the N687.94 billion which was distributed in the previous month, resulted in an increase in N34.67 billion.

“Of that amount, the number of N28,905BN is allocated for the cost of collecting and the amount of N20,811BN given for transfer, intervention and refund,” Faac said.

“The remaining number of N672.90 billion is distributed to three levels of the government, the federal government received N100.93 billion, the state received N336.45 billion, and the local government received N235.51 billion.”

However, the Committee revealed that the Gross Legal Revenue of N2.83 trillion received for the month was lower than the number of N3.07 trillion received in the previous month of N231.91 billion.

Of this amount, the number of N94.58 billion is allocated for the cost of collecting and the total amount of N1.26 trillion for transfer, intervention, and refund.

From the remaining N1.47 trillion balance sheet, the Federal government received N684.46 billion, the state received N347.16 billion, and the local government received N267.65 billion, while N179.31 billion was given to the state -producing state as a 13 percent derivation income.

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FAAC said that from the EMT N33.68 billion, the Federal Government received N4.85 billion, the state received N16.16 billion, the regional government received N11.31 billion, while N1.34 billion was allocated for collection costs.

Communike also said that N41.28 billion from exchange differences was distributed to the federal government (N19.79 billion), states (N10.04 billion), and LGA (N7.74 billion), while the state -producing state received N3.70 billion.

In addition, FAAC said the royalties of oil and gas, VAT and CET levies increased significantly, while the Oil Profit Tax (PPT), Import Duty, EMTL, Company Income Tax (CIT), and Customs which were recorded were reduced.

According to Communike, the total revenue distributed for the current month in August 2025, was taken from legal income N1.47 trillion, VAT from N672.90 billion, N32.33 billion EMTL, and the number of N41.28 billion from the difference in exchange, making the total amount that could be distributed for the month of N41.28 billion.

Speaking at the meeting, Edun praised FAAC members for “their diligent efforts to ensure effective resource allocation for various levels of government”.

“Better days are in front and I urge us to prioritize wise management of public resources, ensuring that our nation’s wealth is used effectively to meet the needs of our citizens,” the Minister said.

Edun added that the reforms introduced by the Federal Government “produced positive results”.

By: Babajide Okeowo