By: ThinkBusiness Africa
The Nigerian Federation Account Allocation Committee (FAAC) has disbursed a total of N1.928 trillion to the Federal Government (FG), States, and Local Government Councils (LGCs) as the Federation Account revenue for November 2025.
The allocation marks the first time in four months that the shared revenue has fallen below the N2 trillion benchmark, signaling a broad-based decline in key revenue streams during the month under review.
According to the report released by FAAC, the total gross revenue available for November 2025 was N2.343 trillion. This figure is significantly lower than the N2.934 trillion gross revenue recorded in October 2025.
The distributable sum of N1.928 trillion was derived from a total gross revenue pool after deducting the Cost of Collection, which amounted to N84.251 billion, and other transfers, interventions, refunds, and savings totaling N330.625 billion.
According to FAAC the N1.928 trillion total distributable revenue was shared among the three tiers of government as follows:
The Federal Government (FG) received N747.159 billion; State Governments (States) N601.731 billion; and Local Government Councils (LGCs) N445.266 billion. 13% Derivation (Oil-Producing States) N134.355 billion.
A major factor in the dip was the underperformance of Nigeria’s crude oil production, which directly impacts the statutory revenue shared by FAAC.
According to the Organisation of Petroleum Exporting Countries (OPEC) Monthly Oil Market Report (MOMR), Nigeria’s crude oil production (excluding condensates) fell marginally to an average of 1.486 million barrels per day (mbpd) in November 2025. This figure is slightly below the 1.496 mbpd recorded in October 2025, and crucially, fell short of Nigeria’s assigned OPEC quota of 1.5 mbpd
The modest drop in production volume, combined with an average Brent crude oil price of approximately $63.69 per barrel in November (a slight decrease from October), directly translated into lower revenues from Petroleum Profit Tax (PPT) and Oil and Gas Royalties.
The gross statutory revenue for November stood at N1.736 trillion, a significant drop of N427.969 billion when compared to the N2.164 trillion received in October 2025. Similarly, gross VAT revenue decreased by N156.785 billion, moving from N719.827 billion in October to N563.042 billion in November.
The reduced allocation comes at a critical time for state and local governments, who rely heavily on the monthly FAAC disbursement to fund salaries, infrastructure projects, and essential services. The lower figures from key revenue sources, particularly oil and corporate taxes, may necessitate a review of budgetary expenditure and fiscal discipline across the sub-national level.
