November FAAC revenue allocation falls below N2tr

For the first time in four months, revenue shared by the three tiers of government fell below the N2 trillion mark, reflecting a broad-based decline in key revenue streams in November 2025.

A total sum of N1.928 trillion, representing the Federation Account Revenue for November 2025, was shared among the Federal Government, state governments and local government councils at the December 2025 meeting of the Federation Account Allocation Committee held in Abuja.

A communiqué issued after the meeting attributed the drop in revenue to significant reductions recorded across several major tax and non-tax heads during the month under review.

According to the FAAC communiqué, “in November 2025, Excise Duty increased moderately while Petroleum Profit Tax, Hydrocarbon Tax, Companies Income Tax on upstream activities, Companies Income Tax, Capital Gains Tax, Stamp Duties, Oil and Gas Royalties, Import Duty, Common External Tariff levies, Value Added Tax, Electronic Money Transfer Levy and fees recorded substantial decreases.”

The committee disclosed that total gross revenue of N2.343 trillion was available in November 2025. From this amount, a sum of N84.251 billion was deducted as cost of collection, while N330.625 billion went into transfers, interventions, refunds and savings, leaving N1.928 trillion as total distributable revenue for the three tiers of government.

The communiqué further stated that the N1.928 trillion shared comprised distributable statutory revenue of N1.403 trillion, distributable Value Added Tax revenue of N485.838 billion and Electronic Money Transfer Levy revenue of N39.646 billion.

A breakdown of statutory inflows showed a notable decline when compared with the previous month. FAAC said gross statutory revenue of N1.736 trillion was received in November 2025, which was lower than the N2.164 trillion recorded in October 2025 by N427.969 billion. Similarly, gross revenue from Value Added Tax stood at N563.042 billion in November 2025, falling short of the N719.827 billion generated in October 2025 by N156.785 billion.

From the total distributable revenue of N1.928 trillion, the Federal Government received N747.159 billion, while the state governments shared N601.731 billion. The local government councils received N445.266 billion, and an additional N134.355 billion, representing 13 per cent of mineral revenue, was distributed to the oil-producing states as derivation revenue.

On the N1.403 trillion distributable statutory revenue, the Federal Government received N668.336 billion, the state governments received N338.989 billion, while the local government councils got N261.346 billion. The sum of N134.355 billion was also set aside and shared to the benefiting states as derivation revenue.

The distribution of Value Added Tax revenue showed that from the N485.838 billion shared, the Federal Government received N72.876 billion, the state governments received N242.919 billion and the local government councils got N170.043 billion.

In addition, revenue from the Electronic Money Transfer Levy amounted to N39.646 billion, out of which the Federal Government received N5.947 billion, the state governments received N19.823 billion and the local government councils received N13.876 billion.