FG, States, LGs Share ₦1.969 Trillion December 2025 Federation Revenue
The Federal Government, 36 state governments, and 774 local government councils have shared a total of ₦1.969 trillion as Federation Account revenue for December 2025.
The distribution was disclosed in a communiqué released after the January 2026 meeting of the Federation Account Allocation Committee (FAAC). The statement was issued by the Director of Press and Public Relations in the Office of the Accountant-General of the Federation, Mr. Bawa Mokwa.
According to the communiqué, the ₦1.969 trillion total distributable revenue comprised ₦1.084 trillion from statutory revenue, ₦846.507 billion from Value Added Tax (VAT), and ₦38.110 billion from the Electronic Money Transfer Levy (EMTL).
The committee noted that total gross revenue of ₦2.585 trillion was available for the month of December 2025. From this amount, deductions for the cost of collection stood at ₦104.697 billion, while transfers, refunds, and savings accounted for ₦511.585 billion, leaving the ₦1.969 trillion shared among the three tiers of government.
A breakdown of the allocation shows that the Federal Government received ₦653.500 billion, while state governments collectively received ₦706.469 billion. Local government councils received a total of ₦513.272 billion. In addition, oil-producing states received ₦96.083 billion as 13 per cent derivation revenue from mineral resources.
Further details from the communiqué indicate that gross statutory revenue for December 2025 amounted to ₦1.631 trillion. This figure represented a decrease of ₦105.202 billion compared to the ₦1.736 trillion recorded in November 2025.
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In contrast, revenue from Value Added Tax recorded a significant increase. Gross VAT revenue for December 2025 stood at ₦913.957 billion, up by ₦350.915 billion from the ₦563.042 billion generated in November 2025.
From the ₦1.084 trillion distributable statutory revenue, the Federal Government received ₦520.807 billion, while state governments received ₦264.160 billion. Local government councils received ₦203.656 billion, with ₦96.083 billion allocated to benefiting states as derivation revenue.
Similarly, the ₦846.507 billion distributable VAT revenue was shared with the Federal Government receiving ₦126.976 billion, states receiving ₦423.254 billion, and local governments receiving ₦296.277 billion.
Revenue from the Electronic Money Transfer Levy also contributed to the December allocation. From the ₦38.110 billion generated through EMTL, the Federal Government received ₦5.717 billion, state governments received ₦19.055 billion, and local government councils received ₦13.338 billion.
The FAAC communiqué further noted changes in revenue performance across key sectors. Companies Income Tax, Import Duty, and Value Added Tax recorded significant increases during the month under review. Oil and Gas Royalty, CET levies, and fees showed marginal improvements.
However, Excise Duty, Petroleum Profit Tax, and Electronic Money Transfer Levy revenues recorded notable declines in December 2025.
The latest revenue allocation comes amid ongoing public debate over fiscal federalism, subsidy removal, and the impact of increased revenue inflows on governance and service delivery at the state and local government levels.
While higher monthly allocations have been recorded since recent economic reforms, concerns remain among citizens about transparency, accountability, and whether increased revenues are translating into improved infrastructure, healthcare, education, and overall living standards.
As Nigeria continues to navigate fiscal reforms and economic restructuring, FAAC allocations remain a key indicator of government revenue performance and the financial capacity of subnational governments to meet their obligations.