The Federal Government, states and local government councils shared a total of N2.094tn as October 2025 revenue, a marginal drop from the N2.103tn distributed in September, according to figures released after the Federation Account Allocation Committee (FAAC) meeting in Abuja on Wednesday.
The decline, N9bn, or 0.43 per cent, was confirmed in a statement issued by Bawa Mokwa, Director of Press and Public Relations at the Office of the Accountant-General of the Federation (AGF).
He said the allocation comprised N1.376tn statutory revenue, N670.303bn Value Added Tax (VAT), and N47.870bn from the Electronic Money Transfer Levy (EMTL).
Gross revenue for October stood at N2.934tn. Of this amount, N115.278bn was deducted as the cost of collection, while N724.603bn went to transfers, interventions, refunds and savings.
Statutory revenue performed slightly better than in September, rising to N2.164tn, compared with N2.128tn the previous month.
VAT inflow, however, fell sharply to N719.827bn, down N152.803bn from September’s N872.630bn. EMTL receipts also declined.
From the distributable revenue, the Federal Government received N758.405bn, states got N689.120bn, and local governments shared N505.803bn. Oil-producing states received N141.359bn as 13 per cent derivation.
Under the statutory revenue component of N1.376tn, the Federal Government collected N650.680bn, states received N330.033bn, and local governments got N254.442bn, alongside the derivation allocation.
From the N670.303bn VAT pool, the Federal Government earned N100.545bn, states received N335.152bn, and local governments got N234.606bn. The EMTL distribution gave the Federal Government N7.180bn, states N23.935bn, and local governments N16.755bn.
The communiqué noted improved inflows from petroleum profit tax, hydrocarbon tax, companies’ income tax on upstream activities, capital gains tax, stamp duties, oil and gas royalties, import and excise duties, and common external tariff levies. It confirmed declines in VAT, EMTL and fees.
October’s allocation maintains a months-long trend of FAAC disbursements in excess of N2tn, buoyed by higher oil receipts, strong tax collections and improved remittances from key revenue agencies. Yet the slight dip from September reflects ongoing volatility in consumption-based revenues.
The development comes amid continued concerns over the fiscal dependence of states.
The 10th BudgIT State of States Report shows that 31 states relied on FAAC for at least 80 per cent of their revenue.
It indicated that Lagos’s allocation rose from N4.24bn to N11.38bn, while 15 states grew their internally generated revenue (IGR) by more than 50 per cent with Enugu leading the pack, though two states recorded negative IGR growth, including Kebbi.
BudgIT warned that rising FAAC allocations risk discouraging states from strengthening their IGR base, with 29 states relying on FAAC for at least half of total revenue and 21 depending on it for more than 70 per cent.
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