Why FAAC shared Highest Allocation in August

A total of N2.225 trillion was shared among the federal, state, and local governments for August 2025

Sep 18, 2025 - 00:44
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Why FAAC shared Highest Allocation in August
President Tinubu

The Nigeria's Federation Account Allocation Committee (FAAC) shared the highest allocation in August 2025 due to a significant increase in revenue distribution among the three tiers of government. 

According to FAAC, a total of N2.225 trillion was shared among the federal, state, and local governments for August 2025. This amount is the highest recorded allocation, surpassing the N2.001 trillion shared in July 2025.

The breakdown of the allocation is as follows: 

Federal Government: N810.047 billion; State Governments: N709.831 billion; Local Government Councils: N522.228 billion; Oil-Producing States: N183.012 billion as 13% derivation.

The increased allocation was attributed to various revenue sources, including - Value Added Tax (VAT): N722.619 billion, with N672.903 billion shared among the three tiers of government; Statutory Revenue: N1.478 trillion; Electronic Money Transfer Levy (EMTL): N32.338 billion; Exchange Difference: N41.284 billion.

The FAAC's disbursement marks the second consecutive monthly increase in revenue allocation, reflecting the impact of ongoing fiscal reforms and enhanced revenue mobilization efforts by the current administration.

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