FAAC Disburses N9.62 Trillion Over Three Months Amid Downward Trend
Data from the National Bureau of Statistics (NBS) reveals that Nigeria’s Federation Account Allocation Committee (FAAC) distributed a total of N9.62 trillion to federal, state, and local governments over a three-month period. This sum covered revenue generated in August, September, and October of 2025. The figures highlight a consistent monthly decline in disbursements, pointing to increasing fiscal pressures reminiscent of the year’s first quarter.
A Steady Decline in Monthly Allocations
The disbursement trend showed a clear contraction, falling from N3.64 trillion shared in September (from August revenue) to N3.05 trillion in October, and further down to N2.93 trillion in November 2025. This pattern underscores the nation’s ongoing vulnerability to volatile oil revenues and fluctuating exchange-linked income, a fundamental challenge for economic planning. The performance of Value-Added Tax (VAT) emerged as a critical variable within this period.
Breakdown of the Three-Month FAAC Distribution
The period commenced with a N3.64 trillion allocation in September 2025. The Federal Government received N810.05 billion, states got N709.83 billion, and local governments shared N522.23 billion. VAT served as a key stabilizer, while statutory allocations remained dominant. Oil-producing states benefited from significant derivation funds. However, substantial deductions for revenue agencies and a large transfer to the Non-Oil Excess Account revealed underlying structural pressures.
By October, the total disbursement fell to N3.05 trillion. In a notable shift, state governments (N727.17 billion) received more than the Federal Government (N711.31 billion), largely driven by robust VAT receipts. This reinforces the growing importance of consumption taxes for subnational finances, even as overall liquidity tightened with continued transfers to special accounts.
The downward trend culminated in November with the lowest monthly figure of N2.93 trillion. Here, the Federal Government rebounded to claim the largest single share. The consistent decline in allocations presents a complex fiscal landscape, where managing budgets becomes as compulsory as mastering core subjects like English and mathematics for effective governance. This fiscal strain can impact broader economic stability, potentially influencing sectors from banks’ non-performing loans to the appeal of NGX dividend stocks to invest in, while also constraining public sector capacities.
