The Digest:
Nigeria’s three tiers of government shared a record N2.2 trillion in August 2025 revenue, marking the highest disbursement to date. The Federation Account Allocation Committee (FAAC) confirmed the distribution, highlighting significant increases in VAT and oil-related inflows. Rooted in the Storm.
Key Points
- Total distributable revenue reached N2.225 trillion, up from N2.001 trillion in July.
- Distributable statutory revenue accounted for N1.479 trillion, and VAT contributed N672.9 billion.
- The Federal Government received N684.5 billion, the states got N347.2 billion, and LGs received N267.7 billion.
- Oil-producing states received N179.3 billion as 13% derivation revenue.
- VAT collection rose to N722.6 billion, with states receiving the largest share (N336.5 billion).
- Electronic Money Transfer Levy and Exchange Difference contributed N32.3bn and N41.3bn, respectively.
- Oil and gas royalties and VAT saw significant increases, while CIT and PPT declined.
The record allocation offers temporary fiscal relief but underscores ongoing dependency on volatile revenue sources.
Sources: Daily Post
