The Federation Account Allocation Committee (FAAC) has reported a significant decline in national revenue for November 2025, leading to a smaller monthly disbursement to the three tiers of government. The gross statutory revenue for the month fell sharply by N427.969 billion, dropping to N1.736 trillion from the N2.164 trillion recorded in October 2025.
Breakdown of the N1.928 Trillion Disbursement
In a communique issued at the end of its December 2025 meeting held in Abuja on Monday, FAAC disclosed that a total sum of N1.928 trillion from November 2025 Federation Account revenue was shared. This distributable pool was drawn from three main revenue streams.
The total comprised N1.403 trillion in distributable statutory revenue, N485.838 billion from Value Added Tax (VAT), and N39.646 billion from the Electronic Money Transfer Levy (EMTL).
Revenue Sources and Deductions
The committee stated that a total gross revenue of N2.343 trillion was available in November. From this amount, N84.251 billion was deducted for cost of collection, while another N330.625 billion went to total transfers, interventions, refunds, and savings.
A notable decrease was recorded in VAT collections. The gross VAT revenue available for November was N563.042 billion, which is N156.785 billion less than the N719.827 billion available in October 2025.
How the Allocation Was Shared Among Governments
From the total distributable revenue of N1.928 trillion, the Federal Government received the largest share of N747.159 billion. The 36 State Governments collectively got N601.731 billion, while the Local Government Councils received N445.266 billion.
Additionally, the sum of N134.355 billion, representing 13 per cent of mineral revenue, was shared to oil-producing states as derivation revenue.
A detailed look at the statutory revenue share:
- Federal Government: N668.336 billion
- State Governments: N338.989 billion
- Local Government Councils: N261.346 billion
- Derivation (13%): N134.355 billion
From the VAT revenue of N485.838 billion:
- Federal Government: N72.876 billion
- State Governments: N242.919 billion
- Local Government Councils: N170.043 billion
From the EMTL revenue of N39.646 billion:
- Federal Government: N5.947 billion
- State Governments: N19.823 billion
- Local Government Councils: N13.876 billion
Widespread Decline in Key Revenue Streams
A statement signed by the Director of Press and Public Relations, Mr. Bawa Mokwa, provided context for the revenue drop. It noted that in November 2025, only Excise Duty recorded a moderate increase.
Conversely, substantial decreases were recorded across nearly all other major revenue heads. These include Petroleum Profit Tax (PPT), Hydrocarbon Tax, Companies Income Tax (CIT), Oil and Gas Royalties, Import Duty, and the previously mentioned VAT and EMTL.
This broad-based decline highlights ongoing challenges in the nation's revenue generation efforts, impacting the funds available for distribution to all tiers of government for developmental projects and recurrent expenditure.
