In a landmark move, the Federation Account Allocation Committee (FAAC) has released a record N2.225 trillion as federation revenue for August 2025, marking the largest allocation ever to Nigeria’s three tiers of government and other statutory beneficiaries.
This groundbreaking payout represents a significant boost to the nation’s fiscal capacity, carrying positive prospects for economic resilience, infrastructure expansion, and public sector funding.
The revenue, distributed among the Federal, State, and Local Governments, shows a marked improvement in collections, driven by stronger oil receipts, enhanced non-oil revenue, and better tax compliance. Analysts note that this historic figure could ease fiscal strain on states and local governments as they grapple with rising demands for public services and capital projects.
FAAC’s breakdown indicates that the Federal Government, 36 States, and 774 Local Government Areas received sizeable portions, alongside allocations for oil-producing states, derivation funds, and other statutory commitments.
Economists have praised the development, describing it as a potential turning point for budget execution and grassroots development. Many anticipate that the higher allocation will accelerate infrastructure projects, salary settlements, and social programs across the federation.
The August 2025 FAAC allocation not only establishes a new milestone but also highlights the Federal Government’s determination to strengthen revenue generation and ensure fair distribution of the country’s wealth.