FAAC shares N1.969 Trillion among Federal, State, LGs for December 2025

Two weeks after tensions over revenue remittances and deductions, the Federal Government, States, and Local Government Councils have shared a total of N1.969 trillion as the Federation Account revenue for December 2025, signalling a return to consensus at the monthly FAAC meeting.

The allocation was concluded during the January 2026 Federation Account Allocation Committee (FAAC) meeting in Abuja, following the resolution of disputes that delayed the previous sitting.

The disagreement had centred on transparency of inflows from key revenue-generating agencies and rising deductions, which prompted a temporary deadlock between the federal and some state governments.

According to the FAAC communiqué, the N1.969 trillion distributable revenue comprised:

N1.084 trillion in statutory revenue,

N846.507 billion from Value Added Tax (VAT), and

N38.110 billion from the Electronic Money Transfer Levy (EMTL).

Gross revenue for the month stood at N2.585 trillion, from which N104.697 billion was deducted as cost of collection, while N511.585 billion went into transfers, refunds, and savings.

The allocation breakdown is as follows:

Federal Government: N653.500 billion

State Governments: N706.469 billion

Local Government Councils: N513.272 billion

Oil-producing states (13% derivation revenue): N96.083 billion

In terms of statutory revenue:

Federal Government received N520.807 billion

States received N264.160 billion

Local Governments received N203.656 billion

From the VAT pool of N846.507 billion:

Federal Government received N126.976 billion

States received N423.254 billion

Local Governments received N296.277 billion

FAAC noted a significant increase in VAT, Companies Income Tax, Import Duty, and Stamp Duties, while Petroleum Profit Tax, Hydrocarbon Tax, and EMTL recorded declines.

The allocation is expected to ease fiscal pressures on states and local governments, many of which depend heavily on FAAC inflows to meet salaries and fund development projects.

With consensus restored, stakeholders are now turning attention to revenue sustainability and transparency, as sub-national governments continue to grapple with rising costs and limited internally generated revenue.