Federal Accounts Allocation Committee (FAAC) has shared a hefty N1.969 trillion from December 2025 federation revenue among the Federal Government, states, and local councils, driven by a sharp Value Added Tax (VAT) spike despite statutory shortfalls.
FAAC
The monthly communiqué, unveiled after Monday’s meeting, pegged total gross revenue at N2.585 trillion after deductions for collection costs, transfers, refunds, and savings, blending statutory shares, VAT, and Electronic Money Transfer Levy (EMTL) into the distributable pool.
While oil-tied statutory revenue dipped from November levels, VAT receipts soared, fuelling non-oil growth and funneling big bucks to all government tiers, including oil-producing states via derivation payouts.
Breakdown of the N1.969 trillion haul shows the Federal Government pocketing N653.500 billion, states grabbing N706.469 billion, local councils receiving N513.272 billion, and derivation states netting N96.083 billion from mineral proceeds.
Drilling into statutory revenue of N1.084 trillion, the centre took N520.807 billion, states N264.160 billion, locals N203.656 billion, and derivation N96.083 billion, underscoring oil’s enduring clout despite production hiccups.
VAT’s N846.507 billion bounty split as Federal Government N126.976 billion, states N423.254 billion, and locals N296.277 billion, spotlighting consumption tax as a rising fiscal lifeline amid global energy flux.
The December bonanza caps a rollercoaster 2025 for FAAC, where VAT’s relentless climb offsets oil volatility, injecting liquidity for infrastructure, salaries, and projects as Nigeria navigates debt servicing and deficit pressures.
States like Lagos and Rivers, perennial top recipients, stand to turbocharge budgets, while the Federation Account’s steady flow signals macroeconomic stabilisation under President Tinubu’s revenue drive.
