Korede Abdullah 
LAGOS, Nigeria – Nigeria’s Federal Government, states and local government councils share a total of ₦1.969 trillion as Federation Account revenue for December 2025, reflecting a strong rise in Value Added Tax (VAT) collections despite declines in some oil-related revenues.
The allocation follows the January meeting of the Federation Account Allocation Committee (FAAC), according to a communiqué issued by the Office of the Accountant-General of the Federation.
The document shows that the distributable revenue comprises ₦1.084 trillion in statutory earnings, ₦846.507 billion from VAT and ₦38.110 billion generated through the Electronic Money Transfer Levy (EMTL).
FAAC reports that total gross revenue available for December stands at ₦2.585 trillion. From this amount, ₦104.697 billion is deducted as cost of collection, while ₦511.585 billion goes to transfers, refunds and savings.
Despite an overall dip in statutory earnings, VAT performance improves significantly. Gross statutory revenue fell to ₦1.631 trillion in December, down by ₦105.202 billion from November. In contrast, VAT receipts rose sharply to ₦913.957 billion, marking an increase of ₦350.915 billion within one month.
From the ₦1.969 trillion shared, the Federal Government receives ₦653.500 billion, state governments receive ₦706.469 billion, while local government councils get ₦513.272 billion. Oil-producing states also receive ₦96.083 billion as 13 per cent derivation revenue.
The communiqué notes that Companies Income Tax, import duty and VAT record notable growth, while excise duty, petroleum profit tax and EMTL decline considerably. Oil and gas royalties and CET levies post marginal gains.
The figures highlight Nigeria’s growing dependence on non-oil revenue streams amid persistent volatility in global energy markets.
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Mirian Gom 
