The Big Split: FG, States, and LGAs Divide ₦1.96 Trillion December Revenue

In a significant boost for public spending as the new year kicks off, the Federation Account Allocation Committee (FAAC) has shared a total of ₦1.96 trillion among the three tiers of government. The funds, which represent the revenue generated in December 2025, were distributed during the committee’s first meeting of 2026 in Abuja.

The allocation comes at a crucial time for state and local governments as they move to implement their 2026 budgets and address the economic needs of their citizens.

The total gross revenue for December 2025 hit a high of ₦2.585 trillion, though after deductions for the cost of collection (₦104.697 billion) and transfers/savings (₦511.585 billion), the net amount was ready for sharing.

According to the communiqué issued by the Director of Press and Public Relations, Bawa Mokwa, several key sectors saw a spike in productivity. Companies Income Tax (CIT), Import Duty, and VAT all increased significantly during December. However, there were “considerable decreases” in revenue from Petroleum Profit Tax (PPT) and Excise Duties.

“The increase in VAT revenue is a positive signal for the non-oil sector, providing more liquidity for the sub-national governments to meet their monthly obligations,” the communiqué noted.

This disbursement marks a roughly ₦41 billion increase compared to the November revenue shared in December. For many states, this inflow is the “lifeblood” needed to pay civil servant salaries, fund infrastructure projects, and support social intervention programs amid ongoing inflationary pressures.

With the 2026 fiscal year now in full swing, all eyes will be on the state governors and local government chairmen to see how these billions are translated into tangible development for the Nigerian people.