Revenue Slumps Below N2tr Mark for First Time in Four Months
By Patience Ikpeme
Nigeria’s three tiers of government shared a total of N1.928 trillion as Federation Account Revenue for November 2025, marking the first time in four months that the distributable income has fallen below the N2 trillion benchmark.
The allocation was ratified at the Federation Account Allocation Committee (FAAC) meeting held in Abuja in December 2025.
A communiqué released by FAAC attributed the significant decrease in revenue to a broad decline across key tax and duty streams. The statement noted that “Petroleum Profit Tax (PPT), Hydrocarbon Tax (HT), CIT on Upstream Activities, Companies Income Tax (CIT), CGT and SDT, Oil & Gas Royalties, Import Duty, CET Levies, Value Added Tax (VAT), Electronic Money Transfer Levy (EMTL) and Fees recorded substantial decreases.” Only Excise Duty saw a moderate increase during the period.
The N1.928 trillion total distributable revenue comprised N1.403 trillion from distributable statutory revenue, N485.838 billion from distributable Value Added Tax (VAT) revenue, and N39.646 billion from the Electronic Money Transfer Levy (EMTL).
According to the committee’s figures, the total gross revenue available in November 2025 was N2.343 trillion. However, this was significantly reduced by a total deduction for cost of collection amounting to N84.251 billion, alongside total transfers, interventions, refunds and savings of N330.625 billion.
A deeper analysis of the gross revenue streams reveals a sharp contraction. The gross statutory revenue for November 2025 stood at N1.736 trillion. This represents a substantial drop of N427.969 billion compared to the N2.164 trillion recorded in October 2025.
Similarly, the gross revenue from Value Added Tax (VAT) decreased considerably, falling by N156.785 billion from N719.827 billion in October to N563.042 billion in November 2025.
From the total N1.928 trillion distributable revenue, the three tiers of government received specific amounts from the total N1.928 trillion distributable revenue: the Federal Government received a total sum of N747.159 billion, the State Governments received a total sum of N601.731 billion, and the Local Government Councils received N445.266 billion.
The statutory revenue component was distributed as follows: N668.336 billion to the Federal Government, N338.989 billion to the State Governments, N261.346 billion to the Local Government Councils, with the N134.355 billion 13% derivation fund going to the benefiting states.
The distributable VAT revenue of N485.838 billion was shared, giving the Federal Government N72.876 billion, the State Governments N242.919 billion, and the Local Government Councils N170.043 billion.
Finally, the N39.646 billion from the Electronic Money Transfer Levy (EMTL) was allocated, with the Federal Government receiving N5.947 billion, the State Governments N19.823 billion, and the Local Government Councils N13.876 billion.
