A total of ₦1.969 trillion from the December 2025 Federation Account has been allocated to Nigeria’s three tiers of government, the Federal Account Allocation Committee (FAAC) announced following its January 2026 meeting in Abuja. The disbursement, representing the final distributable revenue after statutory deductions, underscores the monthly revenue-sharing mechanism that funds federal, state, and local government operations.
The gross revenue generated for December stood at ₦2.585 trillion. After deducting ₦104.697 billion for collection costs and ₦511.585 billion for various transfers, refunds, and savings, the net distributable amount was ₦1.969 trillion. This sum comprises ₦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).
From the statutory revenue, the Federal Government received ₦520.807 billion, while state governments shared ₦264.160 billion. Local government councils received ₦203.656 billion. An additional ₦96.083 billion—representing a 13 per cent derivation share from mineral revenue—was allocated to benefiting states.
The VAT pool of ₦846.507 billion was distributed as follows: ₦126.976 billion to the federal government, ₦423.254 billion to state governments, and ₦296.277 billion to local councils. From the EMTL, the federal government received ₦5.717 billion, states got ₦19.055 billion, and local councils took ₦13.338 billion.
Overall, from the total distributable ₦1.969 trillion, the Federal Government’s share was ₦653.500 billion. State governments received a combined ₦706.469 billion, and local government councils were allocated ₦513.272 billion.
FAAC’s statement, issued by the Office of the Accountant-General of the Federation, also highlighted trends in revenue performance. Companies’ Income Tax (CIT) and Capital Gains Tax (CGT), along with Standard Duty (STD) and Import Duty, saw significant increases in December. Oil and Gas Royalty, as well as CET Levies and Fees, rose marginally. However, Excise Duty, Petroleum Profit Tax (PPT)/Hydrocarbon Tax (HT), and EMTL recorded considerable decreases during the period.
The regular FAAC allocation is critical for subnational governments’ budgetary planning and service delivery. The December disbursement reflects ongoing fluctuations in key revenue streams, particularly from the non-oil sector, and provides insight into federal fiscal dynamics for the final month of the year.
