The Federation Account Allocation Committee (FAAC) has revealed that the federal government, state governments, and local government councils collectively shared ₦16.44 trillion in the first nine months of 2025, reflecting a 40 percent increase compared to the same period in 2024.
According to the report, the distribution among the tiers of government was as follows:
Federal Government: ₦5.66 trillion
State Governments: ₦5.52 trillion
Local Government Councils: ₦4.04 trillion
Oil-producing states (13% derivation): ₦1.23 trillion, up 27 percent from 2024
The FAAC attributed the growth in allocations to higher oil production, averaging 1.5 million barrels per day in the third quarter of 2025, compared with 1.3 million barrels per day in the corresponding period last year. Other contributing factors include reduced crude theft, reopened export terminals, stronger non-oil revenues, and favorable exchange-rate movements.
Despite the significant increase, analysts caution that many states remain heavily dependent on FAAC allocations, with some using the funds for more than half of their budgets. A substantial portion of the disbursed revenue continues to be allocated to salaries, pensions, and debt servicing, leaving limited resources for infrastructure and social development initiatives.
FAAC’s report highlights the need for sustained revenue growth and prudent fiscal management to support long-term development across all levels of government. Visit www.jocomms.com for more news.
