Federal, state and local governments get major boost
Nigeria’s three tiers of government have received a combined N2.09 trillion as revenue shared for the month of October, following the latest allocation announcement by the Federation Account Allocation Committee, FAAC.
The disbursement, which represents one of the highest monthly revenue shares in recent years, comes amid growing fiscal pressures, rising inflation, and calls for stronger financial accountability across all levels of government.
Breakdown of the allocation
According to the FAAC report presented after its meeting in Abuja, the Federal Government received the largest share in line with the existing revenue formula, while states and local government areas also took significant portions to support their administrative and developmental needs.
The statement noted that the N2.09 trillion total came from a combination of statutory revenues, Value Added Tax (VAT), Electronic Money Transfer Levy (EMTL), and exchange rate differentials. Officials explained that improved collection efficiency and stronger oil receipts contributed to the substantial pool available for sharing.
Crude oil sales, petroleum profit tax, and increased customs revenue were listed among the major revenue drivers, while VAT receipts continued to show stability despite reduced consumer spending in some sectors.
How the funds were distributed
FAAC confirmed that after statutory deductions, including the cost of collection by revenue-generating agencies, oil derivation, and other mandatory transfers, the remaining balance was shared among the three levels of government.
The Federal Government reportedly received over N800 billion, while the 36 states collectively got more than N700 billion. Local councils received over N500 billion, with additional sums allocated for derivation to oil-producing states.
Committee members emphasised that the distribution aligned with constitutional provisions and the revenue sharing formula currently in use.
Why October revenue increased
Economic analysts attribute the high revenue level to favourable global crude market trends as well as improved domestic revenue mobilisation. The Nigerian National Petroleum Company Limited (NNPCL) remitted more earnings from crude sales, while customs improved their performance due to better border monitoring and digitised processes.
There were also indications that increased exchange rate gains played a role in the final figures, as the depreciation of the naira against major currencies boosted naira-denominated revenue.
However, experts warn that fluctuations in global oil prices mean FAAC allocations could remain unstable, stressing the need for more emphasis on non-oil revenue sources.
States urged to prioritise citizens’ welfare
Following the disbursement, policy advocates urged state governors and local council executives to channel the funds into critical sectors such as healthcare, education, agricultural support, and infrastructure.
They argued that with the current cost-of-living crisis, the impact of the N2.09 trillion allocation must be seen in improved service delivery rather than recurrent expenditure or political spending ahead of the 2027 election cycle.
One public finance analyst noted that “the size of the allocation is significant, but the real issue is whether states and LGAs will spend responsibly to alleviate the hardship many Nigerians are facing.”
Calls for more transparency in spending
Civil society groups have renewed their call for transparent utilisation of FAAC funds, stressing that Nigerians deserve full disclosure on how allocations are deployed, particularly with growing concerns over rising debt levels and widening inequality.
They encouraged state assemblies and local councils to demand proper accounting from executives, adding that open financial reporting could help restore public trust.
FAAC reiterates commitment to revenue stability
The committee assured Nigerians that efforts to expand the revenue base would continue, alongside measures to strengthen tax compliance and block leakages. It added that improving the efficiency of government-owned enterprises and deepening economic reforms would help sustain future allocations.
With the October disbursement completed, attention now turns to how the funds will be utilised across the federation as citizens hope for visible improvements in living conditions and public infrastructure.
