Onome Amuge
A total of N2.094 trillion was shared among the three tiers of government in October 2025, slightly below the N2.103 trillion allocated in the previous month, as weakening consumption, rising statutory deductions, and expanding fiscal interventions reduced the amount available for distribution.
The latest figures, released in a communiqué by the Federation Accounts Allocation Committee (FAAC), show that October’s allocation came from a gross revenue inflow of N2.934 trillion, a sizeable amount on its own but one that shrank significantly after the deduction of N115.278 billion for collection costs and N724.603 billion for transfers, interventions, refunds, and mandatory savings.
Revenue pressures were most visible in Value Added Tax (VAT) collections, which fell by N152.8 billion to N719.83 billion, compared with N872.63 billion in September.
Statutory revenue, however, provided a buffer. October’s gross statutory revenue came in at N2.164 trillion, slightly higher than September’s N2.128 trillion by N36.83 billion. But the increase was not enough to offset the dip in VAT and the heavy deductions tied to various federal obligations and intervention programmes.
How the money was shared
From the N2.094 trillion shared in October 2025, the federal government received N758.405 billion, state governments received N689.120 billion, local governments received N505.803 billion, and oil-producing states received N141.359 billion as 13 percent derivation.
From the N1.376 trillion statutory revenue component, the federal government received N650.680 billion, states received N330.033 billion, local governments received N254.442 billion, and derivation to oil-producing states accounted for N141.359 billion.
For VAT revenue amounting to N670.303 billion after deductions, the federal government received N100.545 billion, states received N335.152 billion, and local governments received N234.606 billion.
From the electronic money transfer levy of N47.870 billion, the federal government received N7.180 billion, states received N23.935 billion, and local governments received N16.755 billion.
While the overall allocation remains historically high compared with pre-2024 levels, Nigeria’s governments are facing mounting financing challenges. The combined weight of inflation-driven expenditure, FX-adjusted debt service, and rising wage demands continues to strain budgets.
