The Federal Accounts Allocation Committee (FAAC) has disbursed a total of ₦1.969 trillion to the Federal Government, state governments and Local Government Councils (LGCs) from federation revenues accrued in December 2025.
The allocation was announced in the official communiqué issued at the end of the FAAC meeting held in January 2026 in Abuja.
Gross Revenue and Deductions
Total gross revenue for the month stood at ₦2.585 trillion. From this amount:
- ₦104.697 billion was deducted as cost of collection
- ₦511.585 billion was allocated to transfers, refunds and savings
This resulted in a distributable sum of ₦1.969 trillion shared among the three tiers of government.
Sources of Distributable Revenue
The funds shared were derived from:
- Statutory Revenue: ₦1.084 trillion
- Value Added Tax (VAT): ₦846.507 billion
- Electronic Money Transfer Levy (EMTL): ₦38.110 billion
Allocation by Tier of Government
From the total distributable revenue:
- Federal Government: ₦653.500 billion
- State Governments: ₦706.469 billion
- Local Government Councils: ₦513.272 billion
- Derivation Revenue (13% to oil-producing states): ₦96.083 billion
Breakdown by Revenue Stream
Statutory Revenue (₦1.084 trillion):
- Federal Government – ₦520.807 billion
- State Governments – ₦264.160 billion
- Local Governments – ₦203.656 billion
- Derivation – ₦96.083 billion
Value Added Tax (₦846.507 billion):
- Federal Government – ₦126.976 billion
- State Governments – ₦423.254 billion
- Local Governments – ₦296.277 billion
Electronic Money Transfer Levy (₦38.110 billion):
- Federal Government – ₦5.717 billion
- State Governments – ₦19.055 billion
- Local Governments – ₦13.338 billion
Key Highlights
VAT collections recorded a strong performance in December, significantly boosting overall revenue available for distribution. While statutory revenue experienced a slight month-on-month decline, improved returns from taxes such as Companies Income Tax, Import Duty and Stamp Duties helped stabilise the allocation.
This latest FAAC distribution underscores the continued importance of federation revenue in sustaining government operations and service delivery across Nigeria’s three tiers of government.
