NEWS
FAAC Shares Record ₦1.969 Trillion December 2025 Revenue as VAT Surges, States and Councils Receive Over ₦1.2 Trillion Combined
The Federation Account Allocation Committee (FAAC) has distributed a total sum of ₦1.969 trillion as Federation Account Revenue for December 2025 among the Federal Government, the 36 state governments, and the 774 local government councils across Nigeria.
The allocation was made at the January 2026 FAAC meeting held in Abuja, as disclosed in a statement issued by the Director of Press at the Office of the Accountant General of the Federation, Bawa Mokwa.
According to the statement, the ₦1.969 trillion total distributable revenue comprised ₦1.084 trillion from distributable statutory revenue, ₦846.507 billion from distributable Value Added Tax (VAT), and ₦38.110 billion generated from the Electronic Money Transfer Levy (EMTL).
The amount shared represents an increase over the ₦1.928 trillion distributed in November 2025, reflecting a modest improvement in national revenue inflows.
FAAC further disclosed that a total gross revenue of ₦2.585 trillion was available in December 2025. From this amount, ₦104.697 billion was deducted as the cost of collection, while ₦511.585 billion was set aside for transfers, refunds, and savings.
The communiqué revealed that gross statutory revenue stood at ₦1.631 trillion in December 2025, which was ₦105.202 billion lower than the ₦1.736 trillion recorded in November 2025, indicating a decline in core statutory earnings.
In contrast, Value Added Tax performance recorded a strong rebound. Gross VAT revenue rose to ₦913.957 billion in December 2025, up from ₦563.042 billion in November 2025, representing a significant increase of ₦350.915 billion.
Breakdown of the ₦1.969 trillion distributable revenue shows that the Federal Government received ₦653.500 billion, state governments collectively got ₦706.469 billion, while local government councils received ₦513.272 billion. In addition, ₦96.083 billion, representing 13 per cent of mineral revenue, was shared among oil-producing states as derivation revenue.
From the ₦1.084 trillion distributable statutory revenue, the Federal Government received ₦520.807 billion, state governments got ₦264.160 billion, and local government councils received ₦203.656 billion, while ₦96.083 billion was allocated to benefiting states as derivation revenue.
From the ₦846.507 billion distributable VAT revenue, the Federal Government received ₦126.976 billion, state governments received ₦423.254 billion, and local government councils got ₦296.277 billion.
Similarly, from the ₦38.110 billion generated through the Electronic Money Transfer Levy, the Federal Government received ₦5.717 billion, state governments got ₦19.055 billion, and local government councils received ₦13.338 billion.
FAAC noted that several revenue heads recorded significant improvements in December 2025, including Companies Income Tax/Capital Gains Tax, Stamp Duties, Import Duty, and Value Added Tax.
Oil and Gas Royalty, CET Levies, and Fees posted marginal increases, while Excise Duty, Petroleum Profit Tax/Hydrocarbon Tax, and the Electronic Money Transfer Levy experienced considerable declines during the period.
The latest FAAC distribution underscores the continued importance of VAT as a major revenue driver and highlights ongoing fluctuations in oil-related earnings, as governments at all levels navigate fiscal planning for 2026.