- FG, States, LGs Share N2.094tn October Allocation
- Revenue Drops by N9bn as Consumption Taxes Fall
- States Receive N689bn
The Federation Account Allocation Committee, FAAC, has announced that the Federal Government, states and local government councils shared a total of N2.094 trillion as revenue for October 2025, a slight decline from the N2.103 trillion shared in September.
Eko Hot Blog reports that the latest allocation reflects a marginal shortfall of N9 billion, representing a 0.43 per cent month-on-month decrease. FAAC released the figures after its meeting in Abuja on Wednesday.
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According to a statement issued by Bawa Mokwa, Director of Press and Public Relations at the Office of the Accountant-General of the Federation, the N2.094 trillion distributed comprised N1.376 trillion in statutory revenue, N670.303 billion from Value Added Tax, and N47.870 billion from Electronic Money Transfer Levy.
Total gross revenue for October stood at N2.934 trillion, from which N115.278 billion was deducted as the cost of collection, while N724.603 billion went to transfers, interventions, refunds and savings.
Gross statutory revenue recorded a slight improvement, rising to N2.164 trillion, compared to N2.128 trillion in September. VAT, however, dropped sharply from N872.630 billion in September to N719.827 billion in October, a decline of N152.803 billion. EMTL collections also fell.
From the distributable pool, the Federal Government received N758.405 billion, states got N689.120 billion, while local government councils received N505.803 billion. Oil-producing states shared N141.359 billion as 13 per cent derivation.
Breakdown of statutory revenue showed that the Federal Government received N650.680 billion, states got N330.033 billion, and LGAs received N254.442 billion, with the derivation component retained at N141.359 billion.
From VAT revenue of N670.303 billion, the Federal Government collected N100.545 billion, states received N335.152 billion, and LGAs got N234.606 billion.
EMTL distribution saw the Federal Government take N7.180 billion, states received N23.935 billion, and local governments got N16.755 billion.
FAAC noted increases in petroleum profit tax, hydrocarbon tax, companies income tax from upstream operations, capital gains tax, stamp duties, oil and gas royalties, import duty, excise duty and CET levies. Declines were recorded in VAT, EMTL and some administrative fees.
The October allocation marks another month where FAAC disbursements exceeded N2 trillion, supported by improved oil receipts and stronger tax remittances. However, the slight decline from September highlights ongoing volatility in consumption-based revenues.
A recent BudgIT State of States report revealed that 31 states rely on FAAC for at least 80 per cent of their revenue, with 29 states depending on FAAC for at least half of their income. Lagos was noted for a significant rise in FAAC allocation from N4.24 billion to N11.38 billion while Kebbi recorded negative internally generated revenue growth.
The report warns that most states continue to face fiscal pressure due to heavy dependence on federal transfers, underscoring the need for stronger revenue mobilization strategies.
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