November 20, (THEWILL) — The Federation Account Allocation Committee (FAAC) has shared N2.094 trillion from October 2025 revenues among the three tiers of government: the Federal Government, the 36 states, and the 774 Local Government Councils.
According to the FAAC communiqué, the distributable funds included N1.376 trillion in statutory revenue, N670.303 billion from Value Added Tax (VAT), and N47.870 billion from the Electronic Money Transfer Levy (EMTL).
From the total allocation, the Federal Government received N758.405 billion, the state governments received N689.120 billion, and the Local Government Councils received N505.803 billion. A sum of ₦141.359 billion was set aside as derivation revenue for oil-producing states.
Gross revenue for October, as reported by FAAC, was N2.934 trillion. After N115.278 billion was deducted for the cost of collection, N724.603 billion went to transfers, interventions, refunds, and savings.
Statutory revenue rose to N2.164 trillion in October, up from about N2.128 trillion in September.
Meanwhile, VAT inflows dropped compared to the previous month, falling by N152.803 billion to N719.827 billion.
The massive N2.09 trillion allocation underscores the scale of government resources flowing through the federation account, reinforcing fiscal capacity for recurrent spending, capital projects, and service delivery. Because a large portion of the revenue comes from statutory sources, it suggests strong performance in key tax streams like petroleum profit tax, excise, and import duties — although FAAC noted that some revenues (like VAT and EMTL) declined. The significant derivation payment (141.36 billion) to oil-producing states will support resource-rich sub-national governments, potentially accelerating infrastructure and development in those areas. However, the drop in VAT collections also raises concerns about consumer demand and consumption trends, which could affect states that rely heavily on consumption-based revenue.
The N2.094 trillion FAAC distribution for October is a strong fiscal signal: Nigeria continues to mobilise high federation-level revenue, but narrowing VAT inflows suggest rising economic pressure on consumption. With such large sums flowing to states and local governments, the onus is on them to efficiently utilise these resources to improve infrastructure, enhance social services, and fulfil development promises.
Ogochukwu Onwaeze
