Key Points
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FAAC shared ₦2.094tn in October among FG, states, and LGs.
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VAT receipts fell sharply, raising allocation efficiency concerns.
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Statutory revenue growth supports stronger sub‑national funding flows.
According to a statement released after the FAAC’s November 2025 meeting in Abuja, the committee gave out N2.094 trillion to the Federal Government, state governments, and Local Government Councils (LGCs). The allocation shows how much money can be distributed from all the different types of taxes, including VAT, electronic levies, and statutory taxes.
Bawa Mokwa, the Office of the Accountant-General of the Federation’s (OAGF) Director of Press and Public Relations, confirmed the numbers. He stressed that FAAC’s monthly meetings make sure that shared revenues are distributed fairly and openly.
Gross income goes up, but VAT goes down
According to FAAC, the total gross revenue available in October was N2.934 trillion. This includes N115.278 billion in collection costs and N724.603 billion in transfers, interventions, refunds, and savings.
The gross statutory revenue for this period was N2.164 trillion, which is N36.832 billion more than the N2.128 trillion from September. At the same time, VAT collections dropped sharply to N719.827 billion, a drop of N152.803 billion from the previous month. This shows that indirect tax inflows are still changing.
The message also said that the Electronic Money Transfer Levy (EMTL) brought in N47.870 billion to the revenue pool.
Distribution of funds in tiers
The Federal Government got N758.405 billion, the states got N689.120 billion, and the Local Government Councils (LGCs) got N505.803 billion from the total N2.094 trillion that could be shared. Oil-producing states also got N141.359 billion, which is 13% of mineral revenue, as derivation revenue.
To break it down even more:
- The FG got N650.680 billion from the N1.376 trillion in taxes, the states got N330.033 billion, and the LGCs got N254.442 billion.
- The total amount of VAT funds was N670.303 billion, with the FG getting N100.545 billion, the states getting N335.152 billion, and the LGCs getting N234.606 billion.
- The N47.870 billion in EMTL money was split up as follows: N7.180 billion for the FG, N23.935 billion for the states, and N16.755 billion for the LGCs.
What this means for fiscal planning
The FAAC allocation shows how important shared revenues are for keeping state and local government budgets balanced. While statutory collections help with making plans for the future, the big drop in VAT shows how weak consumption-based revenue streams can be. Analysts say that keeping an eye on deductions and continuing to focus on making money efficiently will be very important for keeping cash flow and paying for important public services.
