At Last, N1.96 trn Federation Revenue Shared Among Federal, States, LGs

The Federation Account Allocation Committee (FAAC) has shared N1.969 trillion, the December 2025 federation revenue, among the Federal Government, 36 states, and the 774 local government councils.

The revenue was distributed at the rescheduled January FAAC meeting after the governors disagreed over the collected revenue.

According to a communiqué from the Office of the Accountant-General of the Federation, the total distributable revenue comprised statutory revenue of N1.084 trillion, Value Added Tax (VAT) revenue of N846.507 billion, and Electronic Money Transfer Levy (EMTL) revenue of N38.110 billion.

“The total gross revenue available in December 2025 was N2.585 trillion, with deductions for cost of collection amounting to N104.697 billion and total transfers, refunds, and savings of N511.585 billion,” said Bawa Mokwa, Director of Press and Public Relations, Office of the Accountant-General of the Federation in a communique on Monday.

Gross statutory revenue of N1.631 trillion was received in December 2025, lower than the N1.736 trillion received in November 2025.

However, VAT revenue increased significantly to N913.957 billion, up from N563.042 billion in November.

The Federal Government received N653.500 billion, while state governments received N706.469 billion and local governments received N513.272 billion.

The communiqué also noted that N96.083 billion, representing 13% of mineral revenue, was shared to benefiting states as derivation revenue.

From the N1.084 trillion distributable statutory revenue, the Federal Government received N520.807 billion, state governments received N264.160 billion, and local governments received N203.656 billion.

The N846.507 billion VAT revenue was distributed as follows: Federal Government (N126.976 billion), state governments (N423.254 billion), and local governments (N296.277 billion).

A total of N38.110 billion was received from EMTL, with the Federal Government receiving N5.717 billion, state governments receiving N19.055 billion, and local governments receiving N13.338 billion.

In December 2025, Companies Income Tax, Import Duty, and VAT increased significantly, while Oil and Gas Royalty, CET levies, and fees increased marginally.

Excise Duty, Petroleum Profit Tax, and EMTL recorded considerable decreases.

The revenue distribution reflects the country’s efforts to boost economic growth and development.

Experts, however, urge caution, citing the need for sustained revenue growth and diversification.