The Federation Account Allocation Committee (FAAC) has allocated a total of N1.969 trillion as federation account revenue for December 2025 to the Federal Government, state governments and Local Government Councils (LGs).
The allocation was disclosed in a communiqué issued after the January FAAC meeting and made available by Mr. Bawa Mokwa, Director of Press and Public Relations at the Office of the Accountant-General of the Federation.
The funds were shared from a mix of statutory revenue, Value Added Tax (VAT) and Electronic Money Transfer Levy (EMTL), reflecting changes in revenue performance during the month under review.
What the data is saying
The total distributable revenue of N1.969 trillion was derived from statutory revenue of N1.084 trillion, VAT revenue of N846.507 billion, and EMTL revenue of N38.110 billion.
- Total gross revenue generated in December 2025 stood at N2.585 trillion.
- From the gross revenue, N104.697 billion was deducted as cost of collection.
- A further N511.585 billion was set aside for transfers, refunds and savings.
Overall, FAAC’s distributable pool reflected mixed revenue performance, with improvements in VAT receipts offsetting declines in statutory revenue.
More insights
Gross statutory revenue for December 2025 declined to N1.631 trillion, representing a drop of N105.202 billion compared to the N1.736 trillion recorded in November 2025.
- Gross VAT revenue rose sharply to N913.957 billion in December from N563.042 billion in November.
- This represents an increase of N350.915 billion, indicating stronger consumption and improved VAT collection.
- Companies Income Tax, Import Duty and VAT recorded significant increases during the month.
- Oil and Gas Royalty, CET Levies and Fees saw marginal growth, while Excise Duty, Petroleum Profit Tax and EMTL declined.
The strong VAT performance helped cushion the impact of lower statutory revenue in the overall FAAC distribution.
A breakdown of the N1.969 trillion distributable revenue showed that the Federal Government received N653.500 billion, state governments received N706.469 billion, while Local Government Councils received N513.272 billion.
- Oil-producing states received N96.083 billion as derivation revenue, representing 13 per cent of mineral revenue.
- From the N1.084 trillion statutory revenue, the Federal Government received N520.807 billion, states received N264.160 billion, and LGs received N203.656 billion.
- From the N846.507 billion VAT revenue, the Federal Government received N126.976 billion, states received N423.254 billion, while LGs received N296.277 billion.
- From the N38.110 billion EMTL revenue, the Federal Government received N5.717 billion, states received N19.055 billion, and LGs received N13.338 billion.
These allocations reflect the statutory revenue-sharing formula among the three tiers of government.
What you should know
FAAC’s December 2025 allocation represents a modest increase compared to the previous month.
- In November 2025, FAAC shared a total of N1.928 trillion among the Federal Government, state governments and Local Government Councils.
- The December allocation of N1.969 trillion indicates a month-on-month improvement in distributable revenue.
- The increase was largely supported by stronger VAT collections despite declines in some oil-related revenue streams.
Nigeria’s three tiers of government shared a cumulative N9.62 trillion from the FAAC over a three-month period, covering August, September and October 2025 revenues.
