The Federal Accounts Allocation Committee (FAAC) has announced a substantial distribution of national revenue, allocating a total of N1.969 trillion to the three tiers of government from federation revenue accrued in December 2025. This significant disbursement highlights the ongoing financial operations that support governance across Nigeria.
Revenue Breakdown and Distribution Details
According to the official FAAC communiqué released after its monthly meeting on Monday, the total distributable revenue of N1.969 trillion was derived from multiple sources. The committee reported that the gross revenue for December 2025 reached N2.585 trillion before necessary deductions were made for collection costs, transfers, refunds, and savings allocations.
Sources of Distributable Revenue
The N1.969 trillion distributed amount comprised statutory allocations, Value Added Tax (VAT) receipts, and revenue from the Electronic Money Transfer Levy (EMTL). Notably, while gross statutory revenue experienced a decline compared to November figures, VAT receipts demonstrated a sharp increase, indicating positive growth in Nigeria's non-oil revenue streams.
Allocation to Government Tiers
The December 2025 distribution ensured significant financial resources flowed to all levels of government, including special provisions for oil-producing states through derivation revenue. The specific allocations from the total distributable revenue were structured as follows:
- Federal Government: N653.500 billion
- State Governments: N706.469 billion
- Local Government Councils: N513.272 billion
- Derivation Revenue: N96.083 billion (representing 13% of mineral revenue allocated to oil-producing states)
Detailed Statutory Revenue Distribution
A comprehensive breakdown of the statutory revenue component, which totaled N1.084 trillion, revealed the following allocations:
- Federal Government received N520.807 billion
- State Governments were allocated N264.160 billion
- Local Governments obtained N203.656 billion
- Oil-producing states received N96.083 billion through derivation principles
VAT Revenue Distribution
From the VAT revenue pool of N846.507 billion, the distribution followed established sharing formulas:
- Federal Government: N126.976 billion
- State Governments: N423.254 billion
- Local Governments: N296.277 billion
This substantial December 2025 allocation demonstrates the continued flow of resources to support governmental operations at all levels across Nigeria, with particular attention to the revenue-sharing mechanisms that benefit oil-producing regions through derivation principles.
