The Federation Account Allocation Committee has announced that the total revenue shared to Nigeria’s federal, state, and local governments rose to N2.225 trillion for August 2025.
This marks an 11.2 per cent increase, or N224.1 billion more, than the N2.001 trillion distributed in July and represents the third month in a row that allocations have grown.
The figures were confirmed in a statement from the Office of the Accountant General of the Federation, released after the latest FAAC meeting in Abuja. The total distributable revenue was made up of several streams. A significant N1.478 trillion came from statutory sources, while Value Added Tax (VAT) contributed N672.9 billion. A further N32.3 billion came from the Electronic Money Transfer Levy (EMTL), and N41.2 billion was from exchange difference gains.
After accounting for the cost of revenue collection, which totalled N124.8 billion, and other necessary transfers and interventions worth N1.285 trillion, the net amount of N2.225 trillion was left to be shared among the three tiers of government.
From the statutory revenue pot, the federal government received the largest single share of N684.4 billion. The 36 states were allocated a combined N347.1 billion, while local government councils received N267.6 billion. Additionally, states that produce oil were granted an extra N179.3 billion under the 13 per cent derivation principle.
The VAT revenue was distributed differently, with the federal government taking 15 per cent (N100.9 billion), the states sharing 50 per cent (N336.4 billion), and local governments receiving 35 per cent (N235.5 billion). The smaller sums from the Electronic Money Transfer Levy and exchange differences were also divided according to the standard revenue-sharing formula.
While the headline shared figure grew, the report noted that gross statutory revenue for the month actually fell to N2.838 trillion from N3.070 trillion in July. However, this decline was offset by a healthy rise in VAT collection, which increased by N34.6 billion to N722.6 billion. The statement indicated that oil and gas royalties and certain levies saw significant increases, helping to counter dips in receipts from Petroleum Profit Tax and Company Income Tax.
This consistent growth in shared revenue aligns with President Bola Tinubu’s recent announcement that Nigeria had already hit its revenue target for the year, a feat largely driven by strong performance in the non-oil sector. The increasing allocations provide greater financial resources for governments at all levels to fund their projects and operations.