FG, states, LGs share N2.09tn October revenue
The Federal Government, states and local governments shared a total of N2.094tn as October 2025 revenue, slightly lower than the N2.103tn distributed for September.
The latest figure shows a marginal shortfall of N9bn, representing a 0.43 per cent decrease month-on-month.
The allocation figures were released after the Federation Account Allocation Committee meeting in Abuja on Wednesday.
A statement signed by the Director of Press and Public Relations at the Office of the Accountant-General of the Federation, Bawa Mokwa, detailed the breakdown of the funds shared across all tiers of government.
The statement read, “A total sum of N2.094tn, being October 2025 Federation Account Revenue, has been shared to the Federal Government, States and the Local Government Councils.”
According to the communiqué, the N2.094tn distributed comprised N1.376tn statutory revenue, N670.303bn from Value Added Tax, and N47.870bn from the Electronic Money Transfer Levy.
It added that total gross revenue for October stood at N2.934tn, from which N115.278bn was deducted for the cost of collection, while N724.603bn went to transfers, interventions, refunds and savings.
Statutory revenue performed slightly better in October. Gross statutory inflow rose to N2.164tn, higher than the N2.128tn recorded in September by N36.832bn. VAT, however, declined sharply.
Gross VAT collection dropped to N719.827bn, down by N152.803bn compared with the N872.630bn generated in September.
From the N2.094tn distributable pool, the Federal Government received N758.405bn, states received N689.120bn, and local government councils got N505.803bn.
A total of N141.359bn, representing 13 per cent of mineral revenue, was shared among oil-producing states as derivation.
On the statutory revenue component of N1.376tn, the Federal Government received N650.680bn, states got N330.033bn, while local governments received N254.442bn.
The derivation allocation of N141.359bn also came from this component.
From the N670.303bn VAT revenue, the Federal Government took N100.545bn. States shared N335.152bn, while local governments received N234.606bn.
The EMTL distribution showed that out of the N47.870bn collected, the Federal Government received N7.180bn. States got N23.935bn, and local governments received 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 royalty, import duty, excise duty and common external tariff levies.
It also confirmed declines in VAT, EMTL and fees.
The October allocation continues a trend of high monthly FAAC distributions above N2tn driven by elevated oil receipts, strong tax collections and improved remittances from key revenue-generating agencies.
Yet the slight decline from September’s N2.103tn shows volatility in VAT and EMTL inflows, which remain sensitive to consumption patterns and transaction volumes.
The 10th edition of the BudgIT State of States Report earlier revealed that over 30 states in Nigeria rely on Federal Account Allocation Committee allocations for their revenue, leading to fiscal pressures.
In total, 31 states depended on FAAC for at least 80 per cent of their current revenue, indicating just how challenging the fiscal situation has become for many of them.
“For example, Lagos’s FAAC allocation rose from N4.24bn to N11.38bn, a massive increase that highlights how significant federation account transfers have become within a single fiscal year. Still, credit should go to the states that recorded strong year-on-year growth, as well as those that grew consistently over the ten-year period we reviewed.
“Fifteen states grew their internally generated revenue by more than fifty per cent, with Enugu recording the highest increase, while only two states had negative IGR growth. Kebbi is one of those, unfortunately, and it’s a reminder that both the government and citizens there need to take revenue generation more seriously.”
The report added that 29 states relied on FAAC receipts for at least half of their total revenue, 28 states relied on FAAC for at least 55 per cent of their total revenue, and 21 relied on it for over 70 per cent.
The BudgIT executives expressed concern that the more FAAC allocations go to states, the more disincentivised they appear to boost their internally generated revenue.
