BY GODWIN OBI
The Federal Government, state governments, and local government councils have shared a total of ₦1.969 trillion as revenue generated in December 2025 from the Federation Account.
This was disclosed in a statement issued on Monday by the Director of Press and Public Relations in the Office of the Accountant General of the Federation, Bawa Mokwa, following the January 2026 meeting of the Federation Accounts Allocation Committee (FAAC) held in Abuja.
According to the statement, the amount shared comprised ₦1.084 trillion from statutory revenue, ₦846.507 billion from Value Added Tax (VAT), and ₦38.110 billion from the Electronic Money Transfer Levy (EMTL).
FAAC explained that a gross revenue of ₦2.585 trillion was recorded in December 2025. From this, ₦104.697 billion was deducted as the cost of collection, while ₦511.585 billion was set aside for transfers, refunds, and savings, leaving ₦1.969 trillion for distribution.
The committee noted that gross statutory revenue stood at ₦1.631 trillion, representing a decline of ₦105.202 billion from the ₦1.736 trillion recorded in November 2025.
In contrast, VAT revenue rose significantly, with ₦913.957 billion generated in December 2025, compared to ₦563.042 billion in November—an increase of ₦350.915 billion.
From the total amount distributed, the Federal Government received ₦653.500 billion, the 36 states and the Federal Capital Territory shared ₦706.469 billion, while the 774 local government councils received ₦513.272 billion. In addition, oil-producing states were paid ₦96.083 billion as 13 per cent derivation from mineral revenue.
A breakdown of the ₦1.084 trillion statutory revenue shows that the Federal Government received ₦520.807 billion, states got ₦264.160 billion, and local governments received ₦203.656 billion, alongside the derivation payment.
From the ₦846.507 billion VAT pool, the Federal Government received ₦126.976 billion, states shared ₦423.254 billion, while local governments got ₦296.277 billion.
On the ₦38.110 billion EMTL, the Federal Government received ₦5.717 billion, states got ₦19.055 billion, and local governments were allocated ₦13.338 billion.
FAAC further reported improved performance in Companies Income Tax, Capital Gains Tax, Stamp Duties, Import Duty, and VAT during the month. However, Excise Duty, Petroleum Profit Tax, Hydrocarbon Tax, and EMTL recorded declines, while oil and gas royalties and Common External Tariff levies showed marginal increases.
The committee noted that FAAC allocations remain a critical source of funding for many states and local governments, particularly for salary payments and essential public services.
The latest distribution is expected to support government operations nationwide in the coming weeks.
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