The Federal Government, states and local governments shared N2.094 trillion as October 2025 revenue, a slight decline from the N2.103 trillion distributed in September.
The N9 billion shortfall represents a 0.43 per cent month-on-month decrease.
The details were issued after the Federation Account Allocation Committee (FAAC) meeting in Abuja on Wednesday. Bawa Mokwa, Director of Press and Public Relations at the Office of the Accountant-General of the Federation, released the figures in an official statement.
“A total sum of N2.094tn, being October 2025 Federation Account Revenue, has been shared with the Federal Government, States, and the Local Government Councils,” the statement said.
Breakdown of the N2.094tn Allocation
The shared revenue comprised:
N1.376tn statutory revenue
N670.303bn Value Added Tax (VAT)
N47.870bn Electronic Money Transfer Levy (EMTL)
Gross revenue for October stood at N2.934tn. From this, N115.278bn was deducted as the cost of collection, while N724.603bn went to transfers, interventions, refunds and savings.
Revenue Performance
Statutory revenue improved slightly, rising to N2.164tn, up N36.832bn from September’s N2.128tn.
VAT revenue fell sharply to N719.827bn, a decline of N152.803bn from the N872.630bn recorded in September.
What Each Tier of Government Got
From the total distributable pool:
Federal Government: N758.405bn
States: N689.120bn
Local Government Councils: N505.803bn
Oil-Producing States (13% derivation): N141.359bn
Statutory Revenue (N1.376tn)
FG: N650.680bn
States: N330.033bn
LGs: N254.442bn
Derivation: N141.359bn
VAT (N670.303bn)
FG: N100.545bn
States: N335.152bn
LGs: N234.606bn
EMTL (N47.870bn)
FG: N7.180bn
States: N23.935bn
LGs: N16.755bn
The communiqué noted improvements in petroleum profit tax, hydrocarbon tax, companies’ income tax on upstream activities, capital gains tax, stamp duties, oil and gas royalties, import duties, excise duties and CET levies. It confirmed declines in VAT, EMTL and fees.
FAAC Surges vs State Fiscal Weakness
Despite the slight dip, the October allocation continues the trend of high monthly FAAC disbursements above N2 trillion—sustained by strong oil receipts, tightening of tax collection systems and improved remittances by revenue-generating agencies.
However, volatility in VAT and EMTL highlights their vulnerability to changes in consumption and transaction volumes.
The 10th BudgIT State of States Report warned of deepening fiscal pressures across the federation. It found that 31 states depend on FAAC for at least 80% of their revenue, a sign of weak internal revenue systems.
The report highlighted Lagos as an example of the growing role of FAAC transfers. Its allocation rose from N4.24bn to N11.38bn within a single fiscal year.
It also noted that 15 states grew their IGR by more than 50%, with Enugu leading, while Kebbi was one of only two states with negative IGR growth.
BudgIT concluded that 29 states rely on FAAC for at least half of their total revenue and expressed concern that heavy dependence on federal allocations is weakening states’ drive to expand internally generated revenue.
The organisation warned that the more states rely on FAAC inflows, the less incentive they have to build sustainable fiscal systems—a trend it described as “worrying for long-term economic stability.”
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