The Federal Government, 36 states and 774 local government councils shared a total of ₦26.5 trillion from Federation Account revenues in 2025, Vanguard reports based on Federation Account Allocation Committee (FAAC) communiques.
The Federation Account is the central revenue pool in Nigeria into which federally-collected revenues are paid and from which the three tiers of government are allocated their statutory shares.
The FAAC meets regularly to approve the monthly distribution of revenue from the account, which includes statutory allocations, Value Added Tax (VAT) and other levies.
Federation Account sharing arrangements are guided by Nigeria’s constitution and fiscal federalism framework.
Analysis of FAAC communiques for 2025 shows that the Federal Government received approximately ₦14 trillion from the Federation Account during the year, up from about ₦5.02 trillion in 2024.
States collectively received about ₦7.52 trillion, reflecting their share of distributable revenue under the Federation Account formula.
Local Government Councils (LGAs) together received about ₦4.98 trillion in 2025.
Revenue from Value Added Tax (VAT) allocated through the Federation Account also rose in 2025, reaching around ₦8.23 trillion in shared VAT funds.
The nine oil-producing states, including Abia, Akwa Ibom, Anambra, Bayelsa, Delta, Edo, Imo, Ondo and Rivers, received a total of around ₦1.6 trillion in derivation revenue, representing 13 per cent of mineral revenue shared to benefit oil producing states.
Vanguard said the total distribution in 2025 represented an 84.2 per cent increase from the about ₦14.11 trillion shared among the three tiers of government in 2024.
The reported increase in Federation Account disbursements to the Federal Government, states and LGAs reflects higher revenue inflows available for statutory sharing in 2025 compared with 2024.
Higher allocations may affect planning and budgeting processes across the three tiers of government as they prepare and implement their 2026 budgets.
Allocation of VAT and derivation funds illustrates ongoing fiscal transfers within Nigeria’s federal fiscal framework.
