The Federation Account Allocation Committee (FAAC) has disbursed a total of ₦3.83 trillion to the federal, state, and local governments for August 2025.
According to data from the Office of the Accountant General of the Federation (OAGF) and published by the National Bureau of Statistics (NBS), the disbursement was derived from total revenue generated in July 2025.
Revenue Composition
The ₦3.83 trillion shared among the three tiers of government comprised:
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₦3.07 trillion from the Statutory Account,
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₦687.93 billion from Value Added Tax (VAT),
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₦39.74 billion from Exchange Gain, and
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₦39.16 billion from the Electronic Money Transfer Levy (EMTL).
The report also noted that revenue-generating agencies — including the Nigeria Customs Service (NCS), Federal Inland Revenue Service (FIRS), and Nigerian Upstream Petroleum Regulatory Commission (NUPRC) — collectively received ₦152.67 billion as the cost of collection.
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NCS: ₦27.89 billion
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FIRS: ₦95.86 billion
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NUPRC: ₦28.92 billion
Distribution Breakdown
From the total disbursement, the Federal Government received ₦735.08 billion, while States received ₦660.34 billion and Local Governments received ₦485.03 billion.
Additionally, ₦120.35 billion was allocated to oil-producing states under the 13% derivation fund, in line with constitutional provisions for resource-producing regions.
A detailed breakdown of the Federal Government’s share showed that:
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₦570.61 billion was credited to the Consolidated Revenue Account,
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₦12.02 billion was set aside for Derivation and Ecology,
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₦6.01 billion for the Stabilization Fund,
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₦20.19 billion for the Development of Natural Resources, and
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₦18.44 billion for the Federal Capital Territory (FCT), Abuja.
Fiscal Implications
The sharp rise in total disbursement highlights stronger revenue performance across key streams, including oil royalties, tax collections, and non-oil inflows, supported by exchange rate gains and improved VAT collections.
However, fiscal analysts caution that while FAAC disbursements have increased nominally due to inflation and naira depreciation, the real purchasing value of allocations remains under pressure.
With inflation still elevated and exchange rate volatility persisting, state and local governments are likely to face increased fiscal strain in funding salaries, infrastructure, and social programmes despite higher nominal receipts.
Economists also note that rising FAAC allocations mirror higher federally collected revenue following foreign exchange reforms and crude oil output recovery. Yet, much of the gains are being offset by escalating debt service costs and capital importation challenges.
Outlook
The FAAC report reflects improved revenue mobilization and compliance by the FIRS, NUPRC, and Customs Service. But fiscal sustainability will depend on how effectively the three tiers of government deploy these funds to improve infrastructure, education, healthcare, and job creation.
Analysts say consistent growth in FAAC disbursement — especially above ₦3.5 trillion monthly — indicates that oil receipts and tax collections are rebounding, though Nigeria’s dependence on oil revenues remains a vulnerability.
The ₦3.83 trillion disbursed in August 2025 represents a significant inflow into the economy, providing short-term fiscal relief but reinforcing the need for deeper reforms to strengthen non-oil revenue generation and stabilize public finances.