FAAC distributes N2.428trn amid increase in statutory revenue and decline in VAT receipts
The Federal Government, state governments and local government councils have shared a total of N2.428 trillion as September 2026 Federation Account revenue, following the October meeting of the Federation Account Allocation Committee (FAAC) in Abuja.
The Office of the Accountant-General of the Federation disclosed this in a statement issued on Thursday, October 15, 2026, by its Director of Press and Public Relations, Bawa Mokwa.
The total distributable revenue comprised N1.672 trillion from statutory revenue and N756.587 billion from Value Added Tax (VAT).
According to the FAAC communiqué, a gross revenue of N3.913 trillion was available in September. However, N131.758 billion was deducted as the cost of collection, while N1.352 trillion went to transfers, refunds and savings.
The revenue allocation comes amid an increase in gross statutory revenue and a decline in VAT receipts compared with the preceding month.
FG Receives N832.242bn
Of the N2.428 trillion shared, the Federal Government received N832.242 billion, while the state governments received N799.872 billion.
The local government councils received N560.660 billion, while N236.049 billion was allocated to benefiting states as the 13 per cent derivation revenue from mineral resources.
The allocation reflects the distribution of revenue among the three tiers of government, alongside the statutory derivation entitlement of eligible oil-producing states.
Statutory Revenue Rises by N246.384bn
The communiqué showed that gross statutory revenue increased to N3.096 trillion in September from N2.850 trillion recorded in August, representing an increase of N246.384 billion.
From the N1.672 trillion distributable statutory revenue, the Federal Government received N756.583 billion, while the state governments received N383.749 billion.
The local government councils received N295.855 billion, while N236.049 billion was shared among benefiting states as the 13 per cent mineral revenue derivation.
The increase in statutory revenue provided a boost to the overall Federation Account earnings for the period.
VAT Revenue Declines
In contrast, gross VAT revenue fell to N816.872 billion in September from N834.843 billion in August, representing a decline of N17.972 billion.
From the N756.587 billion distributable VAT revenue, the Federal Government received N75.659 billion, while the state governments received N416.123 billion.
The local government councils received N264.805 billion from the VAT pool.
The decline in VAT receipts indicates a moderation in revenue from consumption-related taxation compared with the preceding month.
Oil Revenue Gains, Other Sources Record Declines
The FAAC communiqué further indicated that revenue from Petroleum Profit Tax, Hydrocarbon Tax, petroleum royalties, import duty, Common External Tariff levies and excise duty recorded significant increases in September.
However, receipts from Companies Income Tax, Capital Gains Tax, Stamp Duties, VAT, mineral royalties, gas-flaring penalties, rental gas-flaring fees and miscellaneous oil revenue declined during the period.
The mixed performance across revenue sources highlights the varying contributions of the country’s petroleum, trade, consumption and corporate tax sectors to the Federation Account.
The monthly FAAC allocation remains a major source of funding for the federal, state and local governments, supporting public expenditure, infrastructure development and the delivery of essential services.
The latest distribution is expected to provide funds to the three tiers of government as they meet their financial obligations and implement development programmes.
