Federal, State and Local Governments Receive ₦1.93 Trillion From November Revenue Allocation

The Federal Government, states and local government councils shared a total of ₦1.93 trillion as revenue for the month of November, reflecting improved inflows from statutory sources amid ongoing fiscal pressures across all tiers of government. Reports by Punch and other Nigerian news outlets indicate that the allocation was approved at the meeting of the Federation Account Allocation Committee, where revenues collected by key government agencies were distributed in line with existing revenue-sharing formulas.

According to details from the FAAC meeting, the shared amount was drawn from statutory revenue, value added tax, exchange rate differentials, and other income streams paid into the Federation Account during the month under review. The allocation comes at a time when governments at all levels are grappling with rising expenditure obligations driven by inflation, salary adjustments, and increased costs of governance.

Reports indicate that the Federal Government received the largest share of the ₦1.93 trillion allocation, consistent with the revenue-sharing formula, while the 36 states and the Federal Capital Territory received their statutory portions. Local government councils across the country also received allocations to support grassroots development and service delivery.

Officials familiar with the FAAC deliberations explained that the November revenue performance was supported by improved receipts from oil and non-oil sources. Crude oil sales, petroleum profit tax, and company income tax were among the major contributors to the distributable revenue, alongside value added tax collections, which have remained a key source of funding for subnational governments.

Despite the sizeable allocation, state governments reportedly expressed concerns about the adequacy of funds in the face of mounting financial obligations. Rising inflation has significantly increased the cost of providing public services, while the removal of fuel subsidies and exchange rate adjustments have placed additional strain on state finances.

Analysts noted that many states remain heavily dependent on monthly FAAC allocations to meet recurrent expenditures such as salaries, pensions, and debt servicing. The ₦1.93 trillion shared in November is therefore seen as critical in helping governments maintain fiscal stability and avoid cash flow shortfalls.

Reports further indicated that value added tax continued to play a significant role in boosting distributable revenue. VAT proceeds are shared among the three tiers of government, with states and local governments receiving a substantial portion. Analysts observed that improved VAT collections reflect increased economic activity and enhanced tax administration, although consumption remains under pressure due to high prices.

Oil revenue performance was also highlighted as a contributing factor to the November allocation. Improved crude oil output and relatively stable global oil prices supported inflows into the Federation Account. However, experts cautioned that oil revenue remains vulnerable to price volatility, production disruptions, and global market uncertainties.

The allocation comes against the backdrop of broader fiscal reforms aimed at improving revenue mobilisation and reducing reliance on borrowing. The Federal Government has repeatedly emphasised the need to expand non-oil revenue sources to ensure more predictable and sustainable funding for all tiers of government.

State governments have also been urged to strengthen internally generated revenue to complement FAAC allocations. Reports indicate that while some states have made progress in expanding their revenue base, many still struggle with weak tax administration, narrow tax nets, and economic constraints that limit revenue growth.

Local government councils, which received their share of the November allocation, face similar challenges. Analysts noted that despite receiving statutory allocations, many councils struggle to translate funds into meaningful development due to governance issues, limited capacity, and competing expenditure priorities.

Economic observers pointed out that the ₦1.93 trillion allocation reflects both opportunities and challenges for public finance management. While the funds provide temporary relief, they argued that sustainable fiscal stability will require prudent spending, transparency, and accountability in the use of public resources.

Reports also highlighted that rising debt obligations remain a major concern for governments at all levels. A significant portion of FAAC allocations is often used to service loans and meet statutory deductions, reducing the amount available for capital projects and social services.

The November revenue sharing has renewed calls for fiscal discipline and better coordination between the Federal Government and subnational authorities. Experts stressed that effective utilisation of allocated funds is essential to achieving development outcomes, particularly in critical areas such as healthcare, education, infrastructure, and social protection.

Labour unions and civil society groups have continued to monitor FAAC distributions closely, especially amid ongoing debates around minimum wage adjustments and salary arrears in some states. They argue that improved revenue inflows should translate into better welfare for workers and improved service delivery for citizens.

The Federal Government has maintained that ongoing reforms in tax administration, customs operations, and oil sector governance are expected to enhance revenue performance over time. Officials expressed optimism that sustained reforms would improve monthly allocations and reduce fiscal stress across the federation.

Analysts, however, warned that external risks such as global economic slowdowns, oil market volatility, and exchange rate pressures could affect future revenue inflows. They urged policymakers to use periods of relatively strong revenue performance to build fiscal buffers and invest in productive sectors.

As governments begin to utilise the November allocations, attention is expected to focus on how effectively the funds are deployed to address pressing socio-economic challenges. Stakeholders emphasised that transparency in revenue management remains critical to maintaining public trust and ensuring value for money.

In summary, the sharing of ₦1.93 trillion among the Federal Government, states, and local government councils for November provides short-term fiscal support amid rising economic pressures. While the allocation offers relief, experts stress that long-term fiscal sustainability will depend on stronger revenue diversification, prudent spending, and improved financial governance across all tiers of government.