FAAC Disburses N1.969trn December 2025 Revenue to FG, States, LGs Amid VAT Surge

The Federation Account Allocation Committee (FAAC) has shared a total sum of N1.969 trillion as the December 2025 Federation Account revenue among the Federal Government, states, and local government councils (LGCs). This allocation, disclosed in a communiqué issued by the Director of Press and Public Relations at the Office of the Accountant-General of the Federation, Mr. Bawa Mokwa, represents a notable increase driven by significant growth in Value Added Tax (VAT) collections.

The revenue was distributed during the January 2026 FAAC meeting held in Abuja. According to the communiqué, the N1.969 trillion total distributable revenue comprised statutory revenue of N1.084 trillion, VAT revenue of N846.507 billion, and Electronic Money Transfer Levy (EMTL) revenue of N38.110 billion. A gross revenue of N2.585 trillion was available for the month, with deductions amounting to N104.697 billion for cost of collection and N511.585 billion for transfers, refunds, and savings.

This December allocation marks an increase of approximately N41 billion compared to the N1.928 trillion shared in November 2025. As earlier reported by NaijaChoice News, the previous month’s distribution reflected a gross total of N2.343 trillion, with similar breakdowns across the tiers of government. The uptick in December is attributed to substantial rises in Companies Income Tax (CIT), Import Duty, and VAT, despite marginal increases in Oil and Gas Royalty and CET levies, and notable decreases in Excise Duty, Petroleum Profit Tax (PPT), and EMTL.

The communiqué highlighted that gross statutory revenue for December stood at N1.631 trillion, down by N105.202 billion from November’s N1.736 trillion. In contrast, VAT revenue surged to N913.957 billion, a N350.915 billion increase from the N563.042 billion recorded the previous month.

Breaking down the distribution:

The 13 per cent derivation revenue of N96.083 billion was allocated to benefiting states from mineral resources, underscoring the ongoing reliance on oil-producing regions for fiscal boosts.

The allocation comes amid reports of initial tensions at the FAAC meeting, where some states expressed dissatisfaction with the proposed figures, citing fiscal strains and lower-than-expected remittances. However, consensus was eventually reached, allowing the disbursement to proceed. Economic analysts have noted that the VAT surge reflects improved consumption patterns towards the end of 2025, potentially signaling early recovery signs in key sectors despite broader challenges like inflation and currency fluctuations.

This latest FAAC sharing brings the cumulative allocations for 2025 to over N20 trillion across the year, with states receiving approximately N6.82 trillion in the first 11 months alone. Governors have called for sustained revenue growth to support infrastructure and social welfare programs, especially as Nigeria grapples with post-2025 economic reforms.