The Federal Government, state governments, and local government councils shared a total of N1.93 trillion as revenue from the Federation Account for November 2025, reflecting a notable decline from the amount distributed in the previous month.
The allocation was made at the December 2025 meeting of the Federation Account Allocation Committee (FAAC) held in Abuja, according to a statement issued on Monday by the Office of the Accountant-General of the Federation.
Data from the FAAC communiqué show that the N1.928 trillion shared in November represents a reduction of N166 billion, or about 7.9 per cent, compared to the N2.094 trillion distributed in October 2025. The drop marks a sharper month-on-month decline than the marginal decrease recorded between September and October.
Weaker Revenue Inflows
The distributable revenue for November was made up of N1.403 trillion in statutory revenue, N485.84 billion from Value Added Tax (VAT), and N39.65 billion generated from the Electronic Money Transfer Levy (EMTL).
Total gross revenue available to the Federation Account in November stood at N2.34 trillion. From this amount, N84.25 billion was deducted as the cost of collection, while N330.63 billion was set aside for transfers, interventions, refunds, and savings.
According to the FAAC communiqué, revenue inflows weakened considerably during the month. Gross statutory revenue declined to N1.74 trillion in November, down by about N428 billion from the N2.16 trillion recorded in October. VAT receipts also dropped sharply, falling to N563.04 billion from N719.83 billion in the previous month.
Allocation Breakdown
From the total N1.928 trillion shared, the Federal Government received N747.16 billion, state governments got N601.73 billion, and local government councils received N445.27 billion. Oil-producing states also received N134.36 billion as 13 per cent derivation revenue.
A further breakdown shows that from the N1.403 trillion statutory revenue, the Federal Government received N668.34 billion, states got N338.99 billion, and local governments received N261.35 billion, in addition to derivation funds.
From the VAT pool of N485.84 billion, the Federal Government received N72.88 billion, states got N242.92 billion, and local governments received N170.04 billion. Revenue from the EMTL was also shared, with the Federal Government receiving N5.95 billion, states N19.82 billion, and local governments N13.88 billion.
Declines Across Key Revenue Lines
The FAAC communiqué attributed the lower allocation largely to broad-based declines in major revenue sources. While excise duty recorded a modest increase, significant drops were reported in Petroleum Profit Tax, Hydrocarbon Tax, Companies Income Tax, Capital Gains Tax, oil and gas royalties, import duty, CET levies, VAT, EMTL, and other fees.
Despite the monthly decline, officials note that cumulative inflows into the Federation Account have remained strong. The Chairman of the Revenue Mobilisation Allocation and Fiscal Commission, Mohammed Shehu, previously disclosed that total inflows rose to N23.06 trillion in the first 10 months of 2025, driven by fiscal reforms, improved audits, and better coordination among revenue-generating agencies.
States’ Growing Dependence on FAAC
Recent findings by BudgIT underscore the fiscal challenges facing subnational governments. Its latest State of States Report revealed that more than 30 states rely heavily on FAAC allocations to fund their operations.
According to the report, 31 states depend on FAAC for at least 80 per cent of their current revenue, while 29 states rely on it for at least half of their total income. The figures highlight the increasing fiscal pressure on states amid fluctuating federal revenue inflows.
