Economy

FAAC Disburses ₦2.225tn to FG, States, LGs in August

The Federation Account Allocation Committee (FAAC) has disbursed ₦2.225 trillion to the Federal Government, states, and local councils for August 2025.

According to Finance Ministry spokesperson Mohammed Manga, the revenue came from statutory allocations, VAT, exchange differences, and electronic levy. Out of a gross ₦3.635 trillion, FG received ₦810.047bn, states ₦709.831bn, LGs ₦522.228bn, and oil-producing states ₦183.012bn as 13% derivation.

Collections included ₦1.478tn statutory revenue, ₦672.9bn VAT, ₦32.3bn electronic money levy, and ₦41.2bn from exchange differences.

Minister of Finance Wale Edun praised the reforms driving higher VAT and royalties but acknowledged weaker corporate tax and imports. He urged prudent resource management, assuring Nigerians that “better days are ahead.”

Economists say the higher VAT reflects improved compliance, but warned revenue volatility remains a risk to states’ fiscal stability.

Byline: IDNN Economy Desk

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