Abuja, November 20, 2025 – The Federation Account Allocation Committee (FAAC) has disbursed a total of N2.094 trillion from October 2025 federation revenue among the three tiers of government: the Federal Government, 36 state governments, and 774 Local Government Councils (LGCs). This allocation, announced following the November FAAC meeting held in Abuja on Wednesday, underscores ongoing fiscal distributions but occurs against a backdrop of sustained high inflation and widespread poverty across the country.
According to a communiqué issued at the end of the meeting and released by Bawa Mokwa, Director of Press and Public Relations at the Office of the Accountant-General of the Federation (OAGF), the N2.094 trillion total distributable revenue comprises N1.376 trillion in distributable statutory revenue, N670.303 billion from Value Added Tax (VAT) revenue, and N47.870 billion from Electronic Money Transfer Levy (EMTL) revenue.
The gross statutory revenue for October stood at N2.164 trillion, marking an increase of N36.832 billion compared to the N2.128 trillion recorded in September 2025. However, gross VAT revenue declined to N719.827 billion, a drop of N152.803 billion from the N872.630 billion available in September. Overall gross revenue for the month reached N2.934 trillion, from which N115.278 billion was deducted for the cost of collection, and N724.603 billion was allocated to transfers, interventions, refunds, and savings.
From the N2.094 trillion shared:
The Federal Government received N758.405 billion.
State governments received N689.120 billion.
Local Government Councils received N505.803 billion.
Oil-producing states received an additional N141.395 billion under the 13% derivation principle.
Further breakdowns within the statutory revenue sharing include: N650.680 billion to the Federal Government, N330.033 billion to states, N254.442 billion to local governments, and the aforementioned N141.395 billion for derivation. For the EMTL component, allocations were N7.180 billion to the Federal Government, N23.935 billion to states, N16.755 billion to LGCs, with N1.995 billion set aside for cost of collection.
The FAAC communiqué attributed the rise in statutory revenue to increases in Petroleum Profit Tax/Hydrocarbon Tax, Company Income Tax from upstream activities, Capital Gains Tax, Stamp Duty, oil and gas royalties, import duties, excise duties, and levies under the Common External Tariff (CET).
Despite these revenue inflows and distributions, economic pressures remain acute. Nigeria’s headline inflation rate eased slightly to 16.05% in October 2025, down from 18.02% in September, according to data from the National Bureau of Statistics (NBS). This marks the seventh consecutive month of decline but still reflects elevated price pressures, with urban inflation at 15.65% year-on-year and rural inflation showing moderation on a month-on-month basis to 0.45%. Food inflation, a key driver of household costs, stood at 21.96% on a 12-month average basis, influenced by rising prices for items such as fresh onions, oranges, pineapples, shrimp, unshelled groundnuts, vegetables like ugu and okazi leaves, and meats including goat meat, cow tail, and liver.
Poverty levels continue to weigh heavily on the population. The World Bank’s October 2025 Nigeria Poverty and Equity Brief, based on the latest official household survey data from the NBS, indicates that 30.9% of Nigerians live below the international extreme poverty line. This equates to approximately 139 million people in poverty in 2025, a figure that has risen since 2019 due to policy challenges, external shocks like COVID-19, and ongoing economic strains. Rural areas face particularly severe conditions, with a poverty rate of 75.5%, while disparities persist along regional, gender, and educational lines: northern zones at 46.5% poverty compared to 13.5% in southern regions; females at 63.9% and males at 63.1% under the $3.65 per day lower-middle-income poverty line; and those without formal education at 79.5% poverty, dropping to 50.0% for those with secondary education.
The persistence of these socioeconomic issues highlights the gap between fiscal allocations and tangible welfare improvements, as households grapple with eroded purchasing power amid stabilizing but still high macroeconomic indicators.
Clarion Newschannel will continue to monitor developments in Nigeria’s economic landscape.
FAAC Allocates N2.094 Trillion in October 2025 Revenue to Federal, State, and Local Governments Amid Persistent Inflation and Poverty Challenges
