In what has been described as a landmark disbursement, the Federal Government, States, and Local Governments shared a record-breaking ₦2.2 trillion revenue for August 2025, the highest monthly allocation ever recorded in Nigeria’s fiscal history.
The allocation, announced by the Federation Accounts Allocation Committee (FAAC), reflects improved revenue inflows driven by crude oil earnings, taxes, and non-oil income sources. According to FAAC, the surge in oil production coupled with strengthened compliance in tax collection significantly boosted the federation’s account.
- Federal Government: ₦1.05 trillion
- 36 States: ₦847 billion
- 774 Local Governments: ₦620 billion
- Derivation (13% for oil-producing states): ₦133 billion
The August disbursement marks a major increase compared to previous months, signaling what officials describe as a positive trajectory for Nigeria’s economic recovery efforts.
Economic analysts say the unprecedented revenue distribution could help stabilize state and local government finances, allowing for increased funding in infrastructure, healthcare, education, and salary payments. However, concerns remain about whether the funds will be efficiently managed to meet developmental needs.
Stakeholders also emphasize the importance of transparency and accountability in managing the revenue, particularly at the state and local government levels, where misuse of funds has historically hindered grassroots development.
While some Nigerians welcome the news with optimism, others argue that high allocations must translate into visible improvements in citizens’ daily lives. Civil society groups have urged governments at all levels to prioritize social welfare and avoid reckless spending.
For now, the ₦2.2 trillion disbursement sets a new benchmark in Nigeria’s revenue-sharing history, with expectations high that it could spark economic progress if properly managed.
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