Two weeks after tensions at the Federation Account Allocation Committee, FAAC, over revenue remittances and deductions, the Federal Government, States and Local Government Councils have now shared a total of one trillion, nine hundred and sixty-nine billion naira as revenue for the month of December 2025, signalling a return to consensus at the federation account.
Cap: A total sum of N1.969 trillion, representing December 2025 Federation Account revenue, has now been shared among the three tiers of government.
The revenue was distributed at the January 2026 Federation Account Allocation Committee meeting, held in Abuja.
This comes barely two weeks after a disagreement between the Federal Government and some state governments over revenue inflows, deductions, and remittances into the federation account, a situation that delayed consensus at the previous FAAC sitting.
The dispute, which centered on transparency of inflows from key revenue agencies and the rising cost of deductions, has now been resolved, allowing the committee to conclude the January allocation meeting.
According to a communiqué issued by FAAC, the N1.969 trillion distributable revenue comprised N1.084 trillion in statutory revenue, N846.507 billion from Value Added Tax, and N38.110 billion from the Electronic Money Transfer Levy.
FAAC disclosed that gross revenue of N2.585 trillion was available in December 2025, from which N104.697 billion was deducted as cost of collection, while N511.585 billion went to transfers, refunds, and savings.
From the total amount shared, the Federal Government received N653.500 billion, State Governments received N706.469 billion, while Local Government Councils got N513.272 billion.
In addition, N96.083 billion, representing 13 percent derivation revenue, was allocated to oil-producing states.
A breakdown of statutory revenue shows that the Federal Government received N520.807 billion, States N264.160 billion, and Local Governments N203.656 billion.
From the VAT pool of N846.507 billion, the Federal Government received N126.976 billion, States N423.254 billion, while Local Governments got N296.277 billion.
Revenue performance for the month showed significant increases in Value Added Tax, Companies Income Tax, Import Duty, and Stamp Duties, while Petroleum Profit Tax, Hydrocarbon Tax, and Electronic Money Transfer Levy recorded notable declines.
The latest allocation is expected to ease fiscal pressures on states and councils, many of which rely heavily on FAAC inflows to meet salary obligations and fund capital projects.
With consensus now restored at FAAC, attention shifts to revenue sustainability and transparency, as sub-national governments continue to grapple with rising costs and limited internally generated revenue.
(Editor: Roluke Ogundele)
