The Federal Accounts Allocation Committee (FAAC) has released a total of N1.969 trillion from the federation’s December 2025 revenue to the Federal Government, state governments, and local councils.
This disbursement, announced in the FAAC communiqué following the committee’s monthly meeting, reflects ongoing efforts to ensure timely distribution of funds across all tiers of government.
According to the report, the gross revenue collected in December 2025 was N2.585 trillion.
After accounting for the cost of revenue collection, refunds, transfers, and savings, the remaining sum became the total distributable revenue.
This amount comprises statutory revenue, Value Added Tax (VAT), and the Electronic Money Transfer Levy (EMTL).
While FAAC noted a decline in statutory revenue compared to November, VAT collections showed a remarkable increase, indicating stronger growth in Nigeria’s non-oil revenue streams.
Out of the N1.969 trillion total distributable revenue, allocations were carefully apportioned.
The Federal Government received N653.500 billion, while state governments were allocated N706.469 billion.
Local government councils received N513.272 billion, and oil-producing states benefitted from N96.083 billion in derivation revenue, representing 13 percent of mineral revenue.
The disbursement ensures that all tiers of government, including states heavily dependent on oil revenue, continue to receive their rightful share of national income.
A closer examination of the statutory revenue component, totaling N1.084 trillion, shows the following breakdown: the Federal Government received N520.807 billion, state governments were allocated N264.160 billion, and local councils received N203.656 billion.
The N96.083 billion derivation revenue was included in this statutory revenue to support oil-producing states, promoting equity and development across resource-rich regions.
The VAT revenue for December 2025 stood at N846.507 billion, with distribution reflecting the contribution of states to national consumption and economic activity.
The Federal Government received N126.976 billion, state governments received N423.254 billion, and local governments received N296.277 billion.
This rise in VAT collections underscores the increasing importance of non-oil revenue streams in supporting public expenditure, particularly for states that are diversifying their economies away from oil dependency.
FAAC emphasized that the December allocation would enhance fiscal capacity at all levels of government.
For the federal government disbursement, these funds support key federal programs and operations, ensuring that government responsibilities across health, education, security, and infrastructure continue without disruption.
For state governments, access to both statutory revenue and VAT collections enables sustained development projects, while local councils rely on their allocations to fund grassroots initiatives that directly affect citizens.
The derivation revenue remains a critical component for oil-producing states.
By design, 13 percent of mineral revenue collected from these regions is returned to them, helping to mitigate the effects of resource exploitation and fund local development projects.
FAAC highlighted that these funds are vital for maintaining infrastructure, supporting local economies, and addressing environmental concerns associated with oil exploration.
Overall, the December 2025 FAAC revenue allocation demonstrates a balance between maintaining federal obligations, supporting state-led development, and empowering local governance.
The committee continues to play a pivotal role in ensuring equitable distribution of resources, transparency in fiscal operations, and a steady inflow of funds that sustain government functions nationwide.
With FAAC’s consistent monitoring and monthly reporting, the government maintains accountability in revenue management, ensuring that every tier of government receives its due share promptly.
This, in turn, strengthens confidence among citizens, investors, and stakeholders in the country’s financial system.
As Nigeria’s economy continues to evolve, both oil and non-oil revenue streams remain critical, and FAAC’s role in balancing these inflows ensures sustainable development and fiscal stability.
The December 2025 FAAC disbursement of N1.969 trillion highlights the committee’s commitment to equitable, timely, and transparent revenue allocation.
From statutory revenue to VAT collections and derivation revenue, each component supports the operational and developmental needs of federal, state, and local governments, reflecting Nigeria’s ongoing effort to manage national resources effectively.
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