The Federation Account Allocation Committee (FAAC) has disbursed a total sum of N1.928 trillion to the federal, state, and local governments as revenue allocation for the month of November 2025. This represents a notable decrease compared to the previous month's distribution.
Breakdown of the N1.93 Trillion Allocation
The allocation was approved at the committee's December meeting, which was chaired by the Minister of State for Finance, Dr. Doris Uzoka-Anite. From the total distributable pool, the federal government received N747.159 billion. The 36 state governments collectively got N601.731 billion, while the 774 local government councils across Nigeria were allocated N445.266 billion.
Furthermore, oil-producing states were granted an additional N134.355 billion as 13% derivation revenue from mineral resources. The committee also approved N84.251 billion for collection costs and set aside N330.625 billion for transfers, interventions, and refunds.
Significant Decline in Key Revenue Streams
The shared revenue was drawn from a gross total of N2.343 trillion, comprising statutory revenue, Value Added Tax (VAT), and the Electronic Money Transfer Levy (EMTL). A communiqué from the meeting highlighted concerning declines in major revenue sources.
Gross VAT revenue for November stood at N563.042 billion, a sharp drop from the N719.827 billion recorded in October 2025. After deductions for collection costs and transfers, the remaining N485.838 billion was shared, with states receiving the largest portion of N242.919 billion.
Similarly, gross statutory revenue fell to N1.736 trillion, down by N427.969 billion from the N2.164 trillion received in the preceding month. The balance from this stream, after all deductions, was N1.403 trillion.
The electronic money transfer levy contributed N43.400 billion to the distributable pool. FAAC noted that while excise duty saw a moderate increase, revenues from petroleum profit tax, company income tax, oil and gas royalties, and import duty experienced significant declines alongside VAT and EMTL.
Context and Comparison with Previous Months
The November 2025 allocation of N1.928 trillion marks a substantial decrease from the N2.94 trillion shared in October 2025. This continues a trend of fluctuating monthly revenues distributed from the federation account, influenced by global oil prices and domestic economic activities.
The total distributable revenue for November was derived from N1.403 trillion in statutory revenue, N485.838 billion from VAT, and N39.646 billion from EMTL. The continued volatility in these key income streams underscores the challenges facing Nigeria's revenue generation efforts and highlights the economy's sensitivity to external and internal fiscal pressures.
