I have a model defined this way
class Lga < ActiveRecord::Base
  validates_uniqueness_of :code
  validates_presence_of :name
end 
I've defined a factory for Lgas with
Factory.sequence(:lga_id) { |n| n + 10000 }
Factory.define :lga do |l|
  id = Factory.next :lga_id
  l.code "lga_#{id}"
  l.name "LGA #{id}"
end
However, when I run
Factory.create(:lga)
Factory.create(:lga)
in script/console I get
>> Factory.create(:lga)
=> #<Lga id: 2, code: "lga_10001", name: "LGA 10001", created_at: "2010-03-18  23:55:29", updated_at: "2010-03-18 23:55:29">
>> Factory.create(:lga)
ActiveRecord::RecordInvalid: Validation failed: Code has already been taken