FG, States, LGs Share N2.09tr October Revenue

 

The Federation Account Allocation Committee (FAAC) has disbursed a total of N2.094 trillion to the Federal Government, states and local governments as revenue for October 2025 — slightly lower than the N2.103 trillion shared in September.

The figure represents a N9 billion shortfall, or 0.43 per cent decline, month-on-month.

FAAC disclosed this in a communiqué issued after its meeting on Wednesday in Abuja.

A statement by the Director of Press and Public Relations, Office of the Accountant-General of the Federation, Bawa Mokwa, highlighted the breakdown of receipts across the three tiers of government.

According to the statement, the N2.094 trillion shared included N1.376 trillion statutory revenue, N670.303 billion Value Added Tax (VAT), and N47.870 billion from the Electronic Money Transfer Levy (EMTL).

It noted that the gross revenue for October stood at N2.934 trillion, from which N115.278 billion was deducted as cost of collection, while N724.603 billion was set aside for transfers, interventions, refunds and savings.

Statutory revenue in October saw a marginal improvement, rising to N2.164 trillion, compared to N2.128 trillion recorded in September — an increase of N36.832 billion. VAT collections, however, declined sharply to N719.827 billion, a drop of N152.803 billion from September’s N872.630 billion.

From the distributable pool, the Federal Government received N758.405 billion, states got N689.120 billion, while local government councils received N505.803 billion.

Oil-producing states received N141.359 billion as 13 per cent derivation.

Of the N1.376 trillion statutory revenue, the Federal Government received N650.680 billion, states got N330.033 billion, and local governments received N254.442 billion, while the derivation allocation also came from this component.

From the N670.303 billion VAT revenue, the Federal Government received N100.545 billion, states got N335.152 billion, and councils received N234.606 billion.

The EMTL component saw the Federal Government take N7.180 billion, states N23.935 billion, and local governments N16.755 billion.

The communiqué cited 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, however, confirmed declines in VAT, EMTL and fees.

FAAC’s October disbursement continues the recent trend of monthly allocations exceeding N2 trillion, driven by higher oil receipts, stronger tax performance and better remittances from revenue-generating agencies. Yet, the slight dip from September underscores ongoing volatility in consumption-linked revenues such as VAT and EMTL.

A recent BudgIT State of States Report showed that over 30 states remain heavily dependent on FAAC allocations. The data revealed that 31 states relied on federation transfers for at least 80 per cent of their current revenue, underscoring growing fiscal stress.

The report also showed that 29 states generated at least half their total revenue from FAAC, while 21 states depended on it for more than 70 per cent. Despite this, 15 states recorded more than 50 per cent growth in internally generated revenue (IGR), with Enugu leading the chart. Only two states, including Kebbi, recorded negative growth.

Lagos also saw a significant increase in FAAC receipts, rising from N4.24 billion to N11.38 billion within a single fiscal year.