Nigeria’s Federation Account Allocation Committee (FAAC) distributed a total of ₦1.969 trillion to the federal, state, and local governments for December 2025, a slight increase from the previous month’s allocation.
The allocation, approved at the January 2026 FAAC meeting in Abuja, was drawn from three main revenue sources: ₦1.084 trillion in statutory revenue, ₦846.507 billion from Value Added Tax (VAT), and ₦38.110 billion from the Electronic Money Transfer Levy (EMTL). This represents a marginal rise from the ₦1.928 trillion shared in November 2025.
The distributable amount was derived from a gross December revenue of ₦2.585 trillion. After deducting ₦104.697 billion for collection costs and setting aside ₦511.585 billion for transfers, refunds, and savings, the remaining sum was allocated.
Gross statutory revenue for December fell short by ₦105.202 billion compared to November, recording ₦1.631 trillion. Conversely, gross VAT revenue saw a significant jump of ₦350.915 billion, totaling ₦913.957 billion.
The federal government received ₦653.500 billion from the total distributable pool. State governments collectively received ₦706.469 billion, while local government councils were allocated ₦513.272 billion. An additional ₦96.083 billion, representing 13% of mineral revenue, was paid to benefiting states as derivation revenue.
From the statutory revenue component, the Federal Government got ₦520.807 billion, states received ₦264.160 billion, and local councils took ₦203.656 billion. The derivation amount of ₦96.083 billion was again paid to the benefiting states.
For VAT, the federal government’s share was ₦126.976 billion, states received ₦423.254 billion, and local councils were allocated ₦296.277 billion. From the EMTL, the federal government received ₦5.717 billion, states got ₦19.055 billion, and local councils received ₦13.338 billion.
The communiqué noted that December saw significant increases in Companies Income Tax/Capital Gains Tax, Import Duty, and VAT collections. Oil and gas royalties, CET levies, and fees rose marginally, while Excise Duty, Petroleum Profit Tax/Hydrocarbon Tax, and EMTL recorded considerable decreases.
The monthly FAAC allocation remains a critical mechanism for distributing Nigeria’s centrally collected revenues among the three tiers of government, impacting public spending and fiscal federalism across the country.
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