Edun call for prudent use of resources as FAAC disbursement jumps to N2.2trn

Wale Edun, minister of Finance and Coordinating Minister of the Economy, has called for a prudent management of public resources, as federal account allocation to the three tiers of government jumps to N2.225 trillion in September.

The minister who chaired the Federation Account Allocation Committee (FAAC) meeting, noted that the economic reforms embarked upon by the Federal Government are yielding positive results. He added that the government’s efforts will continue to drive growth and development.

“As we continue to work together, I urge us to prioritize prudent management of public resources, ensuring that our nation’s wealth is utilized effectively to meet the needs of our citizens,” he said.

Edun, also commended the FAAC Committee for their diligent efforts in ensuring the effective allocation of resources to the various tiers of government.

The N2.225 trillion disbursed to the three tiers of government is higher than N2 trillion disbursed in August. Also the committee stated that the total gross total revenue for the period was N3.63 trillion, this is lower than N3.836 trillion recorded in previous month.

From the total amount disbursed, the Federal government received N810.047 billion, the states received N709.831 billion, the local government councils got N522.228 billion, while the oil producing states received N183.012 billion as derivation, (13 percent of Mineral Revenue).

The committee stated that the sum of N124.839 billion was given for the cost of collection, while N1.285 trillion was allocated for transfers intervention and refunds.

“The Gross revenue available from the Value Added Tax (VAT) for the month of August 2025, was N722.619 billion as against N687.940 billion distributed in the preceeding month, resulting in an increase of N34.679 billion.

“From that amount, the sum of N28.905 billion was allocated for the cost of collection and the sum of N20.811 billion given for transfers, intervention and refunds.

“The remaining sum of N672.903 billion was distributed to the three of tiers of government, of which the Federal government got N100.935 billion, the states received N336.452 billion and local government councils got N235.516 billion,” the committee stated in a Communique issued at the end of the meeting.

It also indicatedthat the gross statutory revenue of N2.838 trillion received for the month was lower than the sum of N3.070 trillion received in the previous month by N231.913 billion.

From the stated amount, the sum of N94.587 billion was allocated for the cost of collection and a total sum of N1.265 trillion for transfers, intervention and refunds.

Of the remaining balance at N1.478 trillion, the Federal government got the sum of N684.462 billion, states received N347.168 billion, the sum of N267.652 billion was allocated to LGCs and N179.311 billion was given to Derivation Revenue (13 percent Mineral producing States).

“Also, the sum of N33.685 billion from Electronic Money Transfer Levy (EMTL) was distributed to the three (3) tiers of government as follows: the Federal government received N4.851 billion, states got N16.169 billion, local government councils received N11. 318 billion, while N1.347 billion was allocated for cost of collection.

“The sum of N41.284 billion from exchange difference which was distributed to the three tiers of government as follows: Federal government got N19.799 billion, the state received N10.042 billion, the LGCs got N7.742 billion, while the Oil producing States received N3.701 billion,” it added.