By: ThinkBusiness Africa
The Federation Account Allocation Committee (FAAC) has officially disbursed a total of ₦1.928 trillion to the three tiers of (Federal, state, local) government for December 2025, Nigerian Bureau of Statistics (NBS) posted on Monday.
This distribution, drawn from a gross total revenue of ₦2.343 trillion generated in November, reflects a tightening fiscal environment as key consumption tax indices fluctuated.
While the gross revenue remains robust, the distributable pool saw a slight contraction compared to the previous month. The difference of approximately ₦415 billion between gross earnings and the shared amount was swallowed by the cost of revenue collection by the Nigerian Revenue Service and Customs, alongside mandatory statutory transfers and refunds.
According to the NBS data, the Federal Government maintained the largest slice of the pie with ₦747.159 billion; though State and Local governments saw significant inflows to manage year-end obligations, with both receiving ₦601.731 billion, and ₦445.266 billion respectively.
Oil-producing states received an additional ₦134.355 billion (13% of mineral revenue) to address environmental and developmental challenges in the Niger Delta.
The November performance was defined by a noticeable dip in Value Added Tax (VAT) collections, which fell to ₦485.838 billion. Analysts suggest this minor “pre-holiday” slump was offset by steady Statutory Revenue, which remains the backbone of the account at ₦1.403 trillion.
Early data for the subsequent month (December 2025 revenue, shared in January/February 2026) suggests a swift recovery. Preliminary figures indicate the distributable pool has climbed back up to ₦1.969 trillion, spurred by a surge in holiday spending and increased import duties.
