The Federal Government, states, and local governments shared a total of N2.094 trillion as revenue for October 2025, slightly below the N2.103 trillion allocated in September. This represents a marginal shortfall of N9 billion, equivalent to a 0.43 percent month-on-month decline.
The allocation breakdown shows that the distributable pool of N2.094 trillion comprised 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). The total gross revenue for October stood at N2.934 trillion, from which N115.278 billion was deducted for the cost of revenue collection, and N724.603 billion was set aside for transfers, interventions, refunds, and savings.
Statutory revenue recorded a modest increase in October, with gross inflows rising to N2.164 trillion, up N36.832 billion from September’s N2.128 trillion. Conversely, VAT collections fell sharply, declining from N872.630 billion in September to N719.827 billion in October, a decrease of N152.803 billion.
From the distributable N2.094 trillion, the Federal Government received N758.405 billion, states collectively got N689.120 billion, and local government councils received N505.803 billion. Oil-producing states also shared N141.359 billion as derivation, representing 13 percent of mineral revenue.
Breaking down statutory revenue of N1.376 trillion: the Federal Government received N650.680 billion, states received N330.033 billion, and local governments got N254.442 billion. The derivation allocation of N141.359 billion was included within this component.
From the VAT revenue of N670.303 billion, the Federal Government took N100.545 billion, states shared N335.152 billion, and local governments received N234.606 billion. For the EMTL of N47.870 billion, the Federal Government received N7.180 billion, states got N23.935 billion, and local governments received N16.755 billion.
October’s allocations highlighted growth in several revenue streams, including 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 tariff levies. However, VAT, EMTL, and certain fees recorded declines, reflecting the sensitivity of these sources to consumption patterns and transactional activity.
The continued high monthly FAAC allocations above N2 trillion are largely driven by strong oil receipts, increased tax compliance, and improved collections by key revenue agencies. Nevertheless, the slight dip from September indicates the volatility of consumption-linked revenues.
The latest data also underscores the heavy reliance of many states on federal allocations for their revenue needs. Over 30 states depend on FAAC distributions for at least 80 percent of their current revenue, highlighting the fiscal pressures faced by subnational governments.
States that have strengthened their internally generated revenue (IGR) continue to see improvements. Fifteen states recorded IGR growth of more than 50 percent year-on-year, with Enugu posting the highest increase. In contrast, a few states, including Kebbi, experienced negative growth, emphasizing the importance of diversifying revenue sources and enhancing collection mechanisms.
The Federal Government has asked the Federal High Court in Abuja to impose the death penalty on Nnamdi Kanu, leader of the proscribed Indigenous People of Biafra (IPOB), following his conviction on seven terrorism-related charges. The request was made on Thursday by the government’s lead counsel, Adegboyega Awomolo, SAN, moments after the court pronounced Kanu guilty on all counts. The conviction marks a major turning point in a legal battle […]
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