The Federation Account Allocation Committee, FAAC, said the Federal Government, states and local governments shared a total of N2.094 trillion as October 2025 revenue, slightly lower than the N2.103 trillion distributed for September.

The latest figure shows a marginal shortfall of N9 billion, representing a 0.43 per cent decrease month-on-month.

FAAC released the figures during its 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.

“A total sum of N2.094 trillion, being October 2025 Federation Account Revenue, has been shared to the Federal Government, states and the local government councils,” the statement read.

It said the N2.094 trillion distributed comprised N1.376 trillion statutory revenue, N670.303 billion from Value Added Tax, and N47.870 billion from the Electronic Money Transfer Levy, EMTL.

According to the statement, total gross revenue for October stood at N2.934 trillion, from which N115.278 billionwas deducted for the cost of collection, while N724.603 billion went to transfers, interventions, refunds and savings.

Statutory revenue performed slightly better in October. Gross statutory inflow rose to N2.164 trillion, higher than the N2.128 trillion recorded in September by N36.832 billion VAT, however, declined sharply.

Gross VAT collection dropped to N719.827 billion, down by N152.803 billion compared with the N872.630 billion generated in September.

From the N2.094 trillion distributable pool, the Federal Government received N758.405 billion, states received N689.120 billion, and local government councils got N505.803 billion.

A total of N141.359 billion representing 13 per cent of mineral revenue, was shared among oil-producing states as derivation.

On the statutory revenue component of N1.376 trillion, the Federal Government received N650.680 billion, states got N330.033 billion while local governments received N254.442 billion. The derivation allocation of N141.359 billion also came from this component.

From the N670.303 billion VAT revenue, the Federal Government took N100.545bn. States shared N335.152 billion, while local governments received N234.606 billion.

The EMTL distribution showed that out of the N47.870 billion collected, the Federal Government received N7.180 billion. States got N23.935 billion, and local governments received N16.755 billion.

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 N2 trillion, driven by elevated oil receipts, strong tax collections and improved remittances from key revenue-generating agencies. Yet the slight decline from September’s N2.103 trillion 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 Federation 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 N4.24 billion to N11.38 billion, 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.