The Federal Government, states, and local governments shared a total of N2.094 trillion from the October 2025 Federation Account Allocation Committee (FAAC) allocation, slightly lower than September’s N2.103 trillion. This represents a marginal shortfall of N9 billion, or 0.43%, highlighting minor fluctuations in monthly federal revenue distribution.
The allocation breakdown, released by the Office of the Accountant-General of the Federation, shows that statutory revenue contributed N1.376 trillion, Value Added Tax (VAT) added N670.303 billion, and the Electronic Money Transfer Levy (EMTL) contributed N47.870 billion. Out of the total distributable pool, the Federal Government received N758.405 billion, states shared N689.120 billion, and local councils received N505.803 billion. Oil-producing states also received N141.359 billion as derivation.
October’s gross revenue stood at N2.934 trillion, with N115.278 billion deducted for collection costs and N724.603 billion allocated to transfers, interventions, refunds, and savings. While statutory revenue showed growth from N2.128 trillion in September to N2.164 trillion in October, VAT collections fell sharply from N872.630 billion to N719.827 billion, illustrating volatility in consumption-driven taxes.
The FAAC communiqué highlighted 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 the common external tariff. However, VAT, EMTL, and fees saw declines, reflecting shifting economic activities and consumer behavior.
The latest allocations underscore the continued reliance of many states on FAAC disbursements. According to the 10th BudgIT State of States Report, 31 states depend on FAAC for at least 80% of their revenue. While some states like Lagos and Enugu showed remarkable growth in allocations and internally generated revenue, others remain heavily dependent on federal transfers, underscoring the need for stronger local revenue generation.
source: Punch