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By Daniel Adaji
The Federal Government, 36 states and 774 local government councils on Monday shared a total of N1.969 trillion as revenue generated from the Federation Account for December 2025.
This is according to a communiqué issued after the January 2026 meeting of the Federation Account Allocation Committee (FAAC) held in Abuja.
The revenue distribution, which followed the statutory monthly FAAC meeting coordinated by the Office of the Accountant General of the Federation, reflects inflows from statutory revenue, Value Added Tax (VAT) and the Electronic Money Transfer Levy (EMTL).
A breakdown of the communiqué showed that the N1.969 trillion total distributable revenue comprised N1.084 trillion as distributable statutory revenue, N846.507 billion from distributable Value Added Tax, and N38.110 billion from the Electronic Money Transfer Levy.
According to the communiqué, “total gross revenue of N2.585 trillion was available in the month of December 2025,” out of which “total deduction for cost of collection was N104.697 billion while total transfers, refunds and savings was N511.585 billion.”
From the amount shared, the Federal Government received N653.500 billion, the state governments received N706.469 billion, while the local government councils received N513.272 billion. In addition, N96.083 billion, representing 13 per cent of mineral revenue, was distributed to the benefiting states as derivation revenue.
FAAC noted that gross statutory revenue of N1.631 trillion was received in December 2025, noting that this was lower than the sum of N1.736 trillion received in the month of November 2025 by N105.202 billion.
The gross revenue of N913.957 billion was available from the Value Added Tax (VAT) in December 2025, which the communiqué said was higher than the N563.042 billion available in the month of November 2025 by N350.915 billion.
On the distribution of the N1.084 trillion statutory revenue, the communiqué stated that the Federal Government received N520.807 billion, the states received N264.160 billion, and the local government councils received N203.656 billion, while N96.083 billion was paid to oil-producing states as derivation revenue.
From the N846.507 billion VAT revenue, the Federal Government received N126.976 billion, the states got N423.254 billion, and the local government councils received N296.277 billion.
The communiqué also revealed that from the N38.110 billion EMTL revenue, the Federal Government received N5.717 billion, the states received N19.055 billion, while the local government councils received N13.338 billion.
FAAC noted that in December 2025, “Companies Income Tax (CIT)/CGT and STD, Import Duty and Value Added Tax (VAT) increased significantly while Oil and Gas Royalty, CET Levies and Fees increase marginally.” It added that “Excise Duty, Petroleum Profit Tax (PPT)/Hydrocarbon Tax (HT) and Electronic Money Transfer Levy (EMTL) recorded considerable decreases.”
The Federation Account Allocation Committee is constitutionally responsible for sharing federally collected revenues among the three tiers of government, federal, state and local, on a monthly basis, following statutory deductions and approved distribution formulas.