The Federation Account Allocation Committee has shared a total of N2.094 trillion among the Federal Government, 36 states and the 774 local government areas as revenue generated in October 2025.
The allocation was announced on Wednesday in Abuja by the Director of Press and Public Relations, Bawa Mokwa, following FAAC’s November meeting.
According to the communiqué, the distributed revenue comprised N1.376 trillion statutory revenue, N670.303 billion from Value Added Tax, and N47.870 billion from the Electronic Money Transfer Levy.
FAAC disclosed that the gross revenue for October rose to N2.934 trillion, from which N115.278 billion was deducted as the cost of collection, while N724.603 billion was set aside for transfers, interventions, refunds and savings.
The committee reported that statutory revenue witnessed an increase, rising to N2.164 trillion, an improvement of N36.832 billion over the N2.128 trillion recorded in September.
However, VAT receipts suffered a major decline. October VAT collections fell to N719.827 billion, representing a sharp N152.803 billion drop from the N872.630 billion generated in September.
FAAC explained that while receipts from major taxes — including Petroleum Profit Tax, Hydrocarbon Tax, Companies Income Tax, Capital Gains Tax, Stamp Duty, Royalties, Import Duty, Excise Duty and CET Levies — recorded notable increases, revenue from VAT, EMTL and Fees declined during the month under review.
According to the statement, the Federal Government received N758.405 billion, states got N689.120 billion, while local government councils received N505.803 billion.
Oil-producing states got N141.359 billion as 13 per cent derivation.
From the statutory revenue of N1.376 trillion, the Federal Government received N650.680 billion, states got N330.033 billion, and LGs received N254.442 billion. The derivation component stood at N141.359 billion.
From the N670.303 billion VAT pool, the Federal Government received N100.545 billion, states got N335.152 billion, while LGs received N234.606 billion.
Under the N47.870 billion EMTL, the Federal Government received N7.180 billion, states got N23.935 billion, and LGs received N16.755 billion.
Economic analysts warned that the continued drop in VAT — a major revenue source for states and LGs — may worsen fiscal pressures, especially with inflation still climbing and several state governments struggling to meet salary obligations.
“Subnational governments rely heavily on VAT. A monthly decline of over N150 billion could deepen existing financial stress,” one analyst said.
FAAC, however, assured that despite fluctuations in revenue inflows, it would maintain a fair, transparent and equitable distribution process to all tiers of government.
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