The Federation Account Allocation Committee (FAAC) has distributed a total of N1.928 trillion as federation allocation for November 2025 to the Federal Government, the 36 state governments, and the 774 local government councils across Nigeria. The allocation was approved at FAAC’s December 2025 meeting, which was chaired by the Minister of State for Finance, Dr. Doris Uzoka-Anite.
According to the official communiqué released after the meeting, the N1.928 trillion shared among the three tiers of government was drawn from a gross revenue pool of N2.343 trillion. This total revenue was generated from a combination of statutory revenue, Value Added Tax (VAT), and proceeds from the Electronic Money Transfer Levy (EMTL). Before distribution, deductions were made to cover the cost of collection, statutory transfers, interventions, and refunds, in line with existing fiscal arrangements.
From the total amount distributed, the Federal Government received N747.159 billion, while the state governments collectively received N601.731 billion. Local government councils were allocated N445.266 billion. In addition, oil-producing states received N134.355 billion as derivation revenue, representing the constitutionally mandated 13 percent share of mineral revenue.
The communiqué further showed that N84.251 billion was deducted upfront as the cost of revenue collection by the relevant agencies. Another N330.625 billion was set aside for transfers, interventions, and refunds before the final distribution to beneficiaries.
A closer look at statutory revenue reveals that gross statutory inflows for November 2025 stood at N1.736 trillion. This figure represents a significant decline of N427.969 billion compared to the N2.164 trillion recorded in the preceding month. From the statutory revenue, N59.993 billion was deducted as the cost of collection, while N273.925 billion was allocated for transfers, interventions, and refunds. The remaining balance of N1.403 trillion was shared among the three tiers of government and oil-producing states.
Under this statutory revenue distribution, the Federal Government received N668.336 billion, state governments were allocated N338.989 billion, and local government councils received N261.346 billion. Oil-producing states shared N134.355 billion as derivation revenue, underscoring the continued importance of crude oil earnings to public finances, despite ongoing efforts to diversify government revenue sources.
Revenue from Value Added Tax also declined during the month under review. Gross VAT collections for November 2025 stood at N563.042 billion, down from N719.827 billion in the previous month, reflecting a decrease of N156.785 billion. From this amount, N22.522 billion was deducted as the cost of collection, while N54.682 billion was allocated for transfers, interventions, and refunds. The remaining N485.838 billion was distributed, with the Federal Government receiving N72.876 billion, state governments N242.919 billion, and local government councils N170.043 billion.
The Electronic Money Transfer Levy contributed N43.400 billion to the distributable pool. Of this amount, the Federal Government received N5.947 billion, state governments were allocated N19.823 billion, and local government councils received N13.876 billion. Deductions totaling N1.736 billion were made for the cost of collection, while N2.018 billion went to transfers, refunds, and savings.
The FAAC communiqué also highlighted broader revenue trends for the month. While excise duty recorded a moderate increase, several key revenue lines experienced notable declines. These included Petroleum Profit Tax, Hydrocarbon Tax, Company Income Tax from both upstream and non-upstream activities, Capital Gains Tax, oil and gas royalties, import duty, CET levies, VAT, EMTL, and various fees. The declines point to ongoing pressures on government revenue amid macroeconomic adjustments, global oil market volatility, and domestic economic challenges.
FAAC meetings play a critical role in Nigeria’s fiscal framework, as they determine the monthly sharing of federally collected revenues among the three tiers of government. Earlier reports showed that Nigeria’s 36 states shared a cumulative N4.43 trillion from FAAC allocations between January and July 2025, with oil-producing states accounting for about 35 percent of total disbursements due to the derivation principle.
During that seven-month period, Delta State emerged as the highest recipient of FAAC allocations, followed by Rivers, Lagos, Akwa Ibom, and Bayelsa states. These figures continue to highlight the central role of oil revenue in subnational finances, even as fiscal authorities push for reforms aimed at strengthening non-oil revenue generation and improving long-term fiscal sustainability.
Emmanuel Bassey is a Financial Expert that has worked in the Banking and Finance Industry for over 15+ years across different banks in Nigeria
