The Nigerian government has shared a total of ₦6 trillion in Federation Account Allocation Committee (FAAC) disbursements among the federal, state, and local governments in the third quarter of last year. This information was revealed in an analysis of the FAAC Q3 allocation released by the Nigeria Extractive Industries Transparency Initiative (NEITI).
According to the analysis, the federal government received ₦2.19 trillion, states received ₦1.97 trillion, and local governments received ₦1.45 trillion. The statement described the allocation as a historic rise in federation account receipts and distributions, with year-on-year quarterly FAAC allocations in 2025 growing by 55.6 percent compared to Q3 of 2024.
The breakdown of the disbursements showed that statutory revenues accounted for 62 percent of shared receipts, while Value Added Tax (VAT) was 34 percent, and Electronic Money Transfer Levy (EMTL) and augmentation from non-oil excess revenue each accounted for 2 percent. The distribution to the 36 states comprised revenues from statutory sources, VAT, EMTL, and ecological funds.
Lagos State recorded the highest revenue at ₦179.3 billion for the quarter, followed by Kano State with ₦79.2 billion, and Rivers State with ₦78.8 billion. Nasarawa State received the lowest allocation of ₦42.5 billion. The data also showed an average monthly allocation of ₦14.1 billion to Nasarawa State, indicating a significant range between the highest and lowest state allocations.
NEITI also revealed that deductions from states’ allocations to service debt and other obligations totaled ₦225.89 billion, which indicates a 6.5 percent decline from the previous quarter. The average debt service ratio across states was 9.4 percent, with individual state ratios ranging from 1.5 percent to 26.8 percent.
The report noted that early Quarter 4 indicators showed lower average oil prices and slightly higher exchange rates compared to Quarter 3 figures, which could reduce foreign exchange-denominated inflows and lead to lower distributable revenues in Q4 of 2025. The NEITI recommended the publication of up-to-date balances and liabilities for key federation accounts to enhance transparency in the inflows, allocations, and disbursements from the federation accounts.
The review also pointed out the need to apply the Appropriation Act benchmarks consistently when determining monthly distributable revenues and to use the Stabilisation Account to smooth monthly disbursements. The NEITI urged the government at all levels to ensure the growth of Nigeria’s sovereign wealth and stabilisation capacity by committing to regular transfers to the Nigeria Sovereign Wealth Fund and other related stabilisation mechanisms.
