The Federal Government, states, and local governments shared N2.094tn as October 2025 revenue, a slight drop from the N2.103tn distributed in September. The difference amounts to N9bn, a 0.43 per cent month-on-month decline. Officials released the figures after the Federation Account Allocation Committee met in Abuja on Wednesday.
Bawa Mokwa, Director of Press and Public Relations at the Office of the Accountant-General of the Federation, issued a statement explaining how the funds were shared. He confirmed that the N2.094tn distributed for October came from N1.376tn in statutory revenue, N670.303bn from Value Added Tax, and N47.870bn from the Electronic Money Transfer Levy.
The total gross revenue for October reached N2.934tn. From this amount, the government deducted N115.278bn for the cost of collection and set aside N724.603bn for transfers, interventions, refunds, and savings. Statutory revenue performed slightly better than the previous month, with gross inflows rising to N2.164tn—an increase of N36.832bn compared to September’s N2.128tn. VAT collection, however, fell sharply. Gross VAT revenue dropped to N719.827bn, down by N152.803bn from the N872.630bn recorded in September.
From the N2.094tn available for sharing, the Federal Government received N758.405bn. States received N689.120bn, and local governments got N505.803bn. Oil-producing states also shared N141.359bn as 13 per cent derivation revenue.
The breakdown of the statutory revenue component of N1.376tn showed that the Federal Government received N650.680bn, states received N330.033bn, and local government councils received N254.442bn. The N141.359bn derivation funds for oil-producing states also came from this statutory component.
From the N670.303bn VAT pool, the Federal Government got N100.545bn. States shared N335.152bn, while local governments received N234.606bn. For the N47.870bn collected through the Electronic Money Transfer Levy, the Federal Government took N7.180bn, states received N23.935bn, and local governments received N16.755bn.
The communiqué highlighted improvements in petroleum profit tax, hydrocarbon tax, companies’ income tax on upstream activities, capital gains tax, stamp duties, oil and gas royalties, import duty, excise duty, and common external tariff levies. It also confirmed declines in VAT, EMTL, and various fees.
October’s allocation continued the trend of monthly FAAC distributions above N2tn, driven by higher oil receipts, stronger tax collections, and better remittances from key revenue-generating agencies. However, the slight dip from September reflects ongoing volatility in VAT and EMTL inflows, which respond quickly to changes in consumer spending and transaction activity.
The 10th edition of the BudgIT State of States Report revealed that more than 30 states remain heavily dependent on FAAC allocations, creating significant fiscal strain across the country. The report noted that 31 states relied on FAAC for at least 80 per cent of their revenue, signalling how difficult independent revenue generation has become for many subnational governments.
BudgIT highlighted examples to show the growing dependence. Lagos saw its FAAC allocation rise from N4.24bn to N11.38bn within a single fiscal year. The report acknowledged states that recorded strong year-on-year growth and those that improved steadily over ten years. It also pointed out that 15 states increased their internally generated revenue by more than 50 per cent, with Enugu achieving the highest growth. Only two states recorded negative IGR growth, including Kebbi, which the report described as a reminder that both citizens and government must take revenue generation more seriously.
The report added that 29 states depended on FAAC for at least half of their revenue, 28 states relied on it for at least 55 per cent, and 21 states depended on it for over 70 per cent. BudgIT executives warned that as FAAC allocations continue to rise, many states seem less motivated to strengthen their own internally generated revenue systems.
