ABUJA — The Federal Government, state governments, and local government areas shared a total of N1.969 trillion in distributable revenue for the month of December 2025, comprising statutory revenue, Value Added Tax, and Electronic Money Transfer Levy collections.
The distribution, detailed in a communiqué, saw the Federal Government receive N653.500 billion, state governments receive N706.469 billion, and local government areas receive N513.272 billion. An additional N96.083 billion, representing 13 per cent of mineral revenue, was shared with benefiting states as derivation revenue.
Total gross revenue of N2.585 trillion was available in December 2025, before deductions for cost of collection amounting to N104.697 billion and total transfers, refunds, and savings of N511.585 billion were applied.
The distributable revenue was made up of statutory revenue of N1.084 trillion, Value Added Tax revenue of N846.507 billion, and Electronic Money Transfer Levy revenue of N38.110 billion.
Gross statutory revenue of N1.631 trillion was received for December 2025. This was lower than the N1.736 trillion received in November 2025 by N105.202 billion, indicating a decline in statutory revenue collection between the two months.
However, gross VAT revenue of N913.957 billion was available in December 2025, which was significantly higher than the N563.042 billion available in November 2025 by N350.915 billion, reflecting a substantial increase in value-added tax collections during the month.
From the N1.084 trillion distributable statutory revenue, the Federal Government received N520.807 billion, state governments received N264.160 billion, local government areas received N203.656 billion, and N96.083 billion was shared to benefiting states as derivation revenue.
The distribution of N846.507 billion in VAT revenue saw the Federal Government receive N126.976 billion, state governments receive N423.254 billion, and local government areas receive N296.277 billion.
From the N38.110 billion Electronic Money Transfer Levy, the Federal Government received N5.717 billion, state governments received N19.055 billion, and local government areas received N13.338 billion.
The revenue figures reflect the ongoing fiscal operations of Nigeria’s federal system, which distributes nationally generated revenue among the three tiers of government according to established formulas and legal frameworks.
The increase in VAT collections between November and December 2025 suggests heightened economic activity during the final month of the year, a trend consistent with seasonal patterns in consumer spending and business transactions.
Conversely, the decline in statutory revenue between November and December highlights the fluctuations inherent in government revenue collection, which can be influenced by various factors, including tax compliance, economic conditions, and collection efficiency.
The Electronic Money Transfer Levy, which is applied to transactions above certain thresholds in the banking system, continues to contribute meaningfully to the nation’s revenue pool as digital financial transactions grow in Nigeria.
The N1.969 trillion revenue distribution underscores the importance of the federal allocation system in sustaining government operations across all tiers, particularly for local government areas that depend heavily on federal allocations for funding essential services, including healthcare, education, and infrastructure development.
