FAAC allocation for October 2025 totals N2.094 trillion to federal, state, and local governments, slightly lower than September due to VAT and EMTL declines

The Federation Account Allocation Committee (FAAC) has announced that a total of N2.094 trillion was shared among the Federal Government, states, and local governments for October 2025, marginally lower than September’s N2.103 trillion.

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According to a statement from Bawa Mokwa, Director of Press and Public Relations at the Office of the Accountant-General of the Federation, the slight N9 billion shortfall represents a 0.43 per cent month-on-month decline.

The distributable revenue included N1.376 trillion from statutory sources, N670.303 billion from Value Added Tax (VAT), and N47.870 billion from the Electronic Money Transfer Levy (EMTL).

From this pool, the Federal Government received N758.405 billion, states shared N689.120 billion, and local governments got N505.803 billion. Oil-producing states received N141.359 billion as derivation.

While statutory revenue improved, VAT collections fell sharply by N152.803 billion compared with September, and EMTL also saw declines.

Gains were recorded in petroleum profit tax, hydrocarbon tax, companies’ income tax on upstream activities, capital gains tax, stamp duties, oil and gas royalties, import duties, excise duties, and common external tariffs.

The October FAAC allocation continues a trend of monthly disbursements above N2 trillion, reflecting strong oil receipts, tax collections, and remittances.

However, dependence on FAAC remains high, with over 30 states relying on these allocations for at least 80 per cent of their revenue, highlighting persistent fiscal pressures across the federation.

Notable increases were recorded in Lagos, where FAAC receipts jumped from N4.24 billion to N11.38 billion, while some states, including Kebbi, experienced slower internally generated revenue growth.

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The report underscores the critical role of FAAC transfers in sustaining state and local government finances amid fluctuating revenue sources.