The Federation Account Allocation Committee (FAAC) has released updated figures showing how revenue generated in November 2025 was distributed among Nigeria’s three tiers of government. During the FAAC meeting held in December 2025, a total sum of ₦1.928 trillion was shared between the Federal Government, state governments and local councils.
Discussed as part of the communique at the FAAC meeting, this allocation represents the funds available for the month of November after accounting for various deductions and the cost of collection. The revenue pool was sourced from statutory earnings, the Value Added Tax (VAT), and the Electronic Money Transfer Levy (EMTL), which together formed the distributable amount of nearly ₦2 trillion.
Of the total ₦1.928 trillion shared, the Federal Government received ₦747.159 billion, states were allocated ₦601.731 billion, and local government councils received ₦445.266 billion. Additionally, oil-producing states were given ₦134.355 billion as derivation revenue based on constitutional provisions for resource-producing areas.
In describing the detailed breakdown, FAAC noted that gross statutory revenue for the month stood at ₦1.736 trillion. This figure fell significantly compared to the revenue available in October 2025, which stood at over ₦2.16 trillion, marking a noticeable drop in core revenue inflows.
“Gross revenue of ₦563.042 billion was available from the Value Added Tax (VAT) in November 2025,” according to the communiqué, with this amount also lower than what was recorded in the previous month. The decline in VAT receipts reflects broader economic pressures impacting consumption and tax performance.
A share of the Electronic Money Transfer Levy (EMTL) also contributed to the revenue pool, but these funds remained a relatively smaller portion of the total distributable revenue. The FAAC communiqué further explained that deductions for cost of collection and transfers, interventions, refunds and savings were applied before distribution, emphasizing that a portion of gross revenues must be set aside to cover these essential functions before funds reach the tiers of government.
FAAC’s role is to ensure that funds collected into Nigeria’s Federation Account are distributed in accordance with constitutional guidelines, taking into account statutory allocations and derivation principles that benefit resource-producing states. The committee’s decision in December reflected a collaborative effort between fiscal authorities to manage the available revenues responsibly.
Despite the total figure approaching the N2 trillion mark, the drop in shared revenue compared to October underscores ongoing challenges in national revenue mobilization. Major revenue lines, including petroleum-related taxes, import duties, and VAT, experienced declines over the month under review. This highlights the volatility in government revenue streams and the sensitivity of allocations to broader economic performance.
Nigeria’s budget-making and economic planning cycles rely heavily on FAAC disbursements, which provide crucial funding for federal operations, state projects, and local services. A reduction in allocations can have ripple effects on public spending plans, infrastructure development, and service delivery, particularly at subnational levels that depend on FAAC receipts for payroll and local investments.
Overall, the November 2025 revenue allocation paints a picture of an economy navigating revenue headwinds while maintaining institutional efforts to distribute funds equitably across government tiers. Continued fluctuations in oil and non-oil revenue, tax compliance dynamics, and global commodity trends will likely shape future FAAC outcomes.
Nigerian federal revenue has contracted, with FAAC allocations dropping roughly 8% from October to November 2025 due to weaker oil and non-oil tax performance and lower VAT inflows. This trend highlights pressure on government finances, underscoring the need for sustained economic diversification and improved revenue-generation capacity.
