Revenue Decline Forces FAAC Sharing to Drop to ₦1.928 Trillion in November
The Federation Account Allocation Committee (FAAC) has announced a sharp decline in revenue available for distribution to the three tiers of government for November 2025, with total allocations falling to ₦1.928 trillion, marking the first time in several months that shared funds dropped below the ₦2 trillion threshold.
At its December meeting in Abuja, FAAC officials revealed that a gross revenue of ₦2.343 trillion was collected during the month, but after statutory deductions and transfers, only ₦1.928 trillion was ultimately distributed to the Federal Government, state governments, and local councils.
The fall represents a significant reduction from the ₦2.094 trillion shared in October.
Analysis of the figures shows that gross statutory revenue, which forms the bulk of FAAC receipts, dropped sharply to ₦1.736 trillion, a decline of ₦427.969 billion compared with October’s collection of ₦2.164 trillion. Revenues from the Value Added Tax (VAT) also fell, with November receipts totaling ₦563.042 billion, down from ₦719.827 billion in the previous month.
Additionally, the Electronic Money Transfer Levy (EMTL) contributed ₦39.646 billion to the distributable pool.
Following deductions and allocations, the Federal Government received ₦747.159 billion, state governments were allocated ₦601.731 billion, and local government councils got ₦445.266 billion.
In line with the 13 per cent derivation principle, ₦134.355 billion was set aside for oil-producing states.
FAAC noted that while some revenue streams, such as excise duties, recorded modest increases, core components including Petroleum Profit Tax (PPT), Companies Income Tax (CIT), and Hydrocarbon Taxes experienced notable declines, contributing to the overall reduction in available funds.
Economists say the November downturn underscores persistent volatility in Nigeria’s revenue-generation capacity, particularly in non-oil tax streams.
This has implications for fiscal planning at federal, state, and local levels, as governments continue to rely heavily on FAAC allocations to meet budgetary obligations and deliver public services.
As policymakers and stakeholders monitor trends in revenue distribution, the November figures highlight the need for enhanced revenue mobilisation and diversification strategies to stabilise allocations and ensure consistent funding for development projects across the country.
