Nigeria’s Federation Account Allocation Committee (FAAC) has disbursed ₦2.34 trillion to the federal, state and local governments for December 2025, drawing from revenue generated in November 2025.
The allocation, approved at FAAC’s monthly meeting, reflects a mix of earnings from statutory revenue, value-added tax (VAT) and other federally collected funds.
As usual, the distribution followed Nigeria’s revenue-sharing formula among the three tiers of government.
The funds are expected to support routine government obligations, including salary payments, infrastructure spending and social services at both federal and sub-national levels. For many states and local councils, FAAC allocations remain their primary source of liquidity amid rising costs and persistent fiscal pressures.
The December disbursement comes at a time when governments across the country are grappling with inflation, currency weakness and growing demands on public finances. Analysts note that while the headline figure appears strong in nominal terms, its real purchasing power is eroded by high inflation and increased debt-servicing costs.
FAAC allocations are coordinated by the Office of the Accountant-General of the Federation and serve as a key pillar of Nigeria’s fiscal federalism, redistributing revenues from oil and non-oil sources to ensure basic governance across all levels.The full December 2025 FAAC Disbursement Report is available on the National Bureau of Statistics microdata portal.