•As oil producing states receive N1.6 trn
The Federal Government (FG), 36 states and 774 local governments shared N26 trillion from Federation Account Allocation Committee (FAAC) revenue in 2025.
This represents an 84.2 percent year-on-year (YoY) increase when compared to N14.11 trillion shared in 2024.
Vanguard analysis of data in the FAAC communiques issued during the period showed that the Federal Government received N14 trillion in 2025, rising by 178.8 percent YoY from N5.02 trillion in 2024.
Similarly, revenue received by the States shot up by 43.5 percent YoY to N7.52 trillion in 2025 from N5.24 trillion in 2024.
Furthermore, Local Government revenue grew by 29.3 percent YoY to N4.98 trillion in 2025 from N3.85 trillion in 2024.
Allocations from Value Added Tax (VAT) also increased by 22.8 percent YoY to N8.23 trillion in 2025 from N6.7 trillion in 2024.
Meanwhile, oil producing states received N1.6 trillion as 13 percent derivation fund from Federation Account Allocation Committee, FAAC, revenue shared in 2025.
The figure represents a 14 percent year-on-year (YoY) increase when compared to N1.4 trillion received in 2024.
Nigeria’s revenue-sharing formula requires that the nine oil-producing states, including Abia, Akwa Ibom, Anambra, Bayelsa, Delta, Imo, Edo, Ondo, and Rivers, receive 13 per cent as oil revenue derivative.
Commenting on the development, analysts at Cowry Asset Management Plc in their weekly financial market outlook said: “In the coming months, government revenues are expected to strengthen further, supported by the mandatory fiscalisation of tax processes, the continued rollout of digital revenue administration systems, and efforts to broaden the tax base.
“These measures should enhance compliance, reduce leakages, and improve transparency over time. “However, fiscal risks remain elevated.
“The large budget deficit, estimated at around N25.3 trillion, continues to pose challenges for borrowing requirements and debt sustainability.
“In addition, geopolitical tensions and potential supply disruptions in global energy markets present upside risks to crude oil prices.
“While higher oil prices could temporarily bolster FAAC inflows, associated volatility highlights the importance of accelerating non-oil revenue reforms and maintaining prudent fiscal policy.”
