Nigeria’s Federation Accounts Allocation Committee figures for December 2025 show a notable contradiction, with the cost of revenue collection rising sharply despite a drop in statutory earnings for the month.
Gross statutory revenue fell to N1.631 trillion in December, down by N105.2 billion from the N1.736 trillion recorded in November.
However, the cost of collecting revenue increased by about 24 percent month on month, climbing from N84.25 billion to N104.7 billion, according to a FAAC communiqué released on Monday.
The News Chronicle noted that the higher collection cost was a major concern for state governments, especially as overall inflows declined.
The tension contributed to protests by state commissioners of finance and delayed the January FAAC meeting before a compromise was reached.
FAAC eventually shared N1.969 trillion as December revenue among the three tiers of government. This included N1.084 trillion from statutory revenue, N846.5 billion from value-added tax, and N38.11 billion from the electronic money transfer levy.
In total, the Federal Government received N653.5 billion, the states N706.47 billion, and the local government councils N513.27 billion. Oil-producing states shared N96.08 billion as derivation revenue.
While statutory revenue declined, VAT collections improved significantly, rising to N913.96 billion from N563.04 billion in November.
Still, analysts say the rising cost of collection, amid weaker core revenue, highlights growing efficiency concerns at a time when governments at all levels are under mounting fiscal pressure.
