FAAC Gross Revenue Hits ₦18.72tn, Disburses ₦12.59tn in First Half of 2026

A new Agora Policy report shows that FAAC generated ₦18.72 trillion in gross revenue during the first half of 2026, with ₦12.59 trillion distributed to the Federal Government, states and local governments. Lagos received the highest allocation, while the report projects that 2026 could exceed last year's record revenue if current trends continue.

Daniel Momodu · August 2, 2026 · 22

Nigeria's Federation Account Allocation Committee (FAAC) generated ₦18.72 trillion in gross revenue during the first half of 2026, while ₦12.59 trillion was shared among the three tiers of government, according to a new report released by Agora Policy. The report showed that the remaining ₦6.13 trillion, representing 33 per cent of total revenue, was deducted for savings, interventions, refunds, transfers and collection costs.

According to the report, statutory revenue remained the largest source of FAAC income, contributing ₦13.95 trillion, or 75 per cent of total receipts, while Value Added Tax (VAT) generated ₦4.77 trillion, accounting for the remaining 25 per cent. Distributable revenue for the period increased by 24.4 per cent from ₦10.12 trillion recorded in the first half of 2025, reflecting improved revenue performance.

Of the ₦12.59 trillion distributed, the Federal Government received ₦4.57 trillion, the 36 states shared ₦4.47 trillion, while the 774 local government councils received ₦3.13 trillion. Oil-producing states also received ₦864.89 billion as 13 per cent derivation allocation. The report noted that the Federal Government regained the largest share of FAAC allocations after states received a slightly higher allocation than the centre during the corresponding period in 2025.

The report further revealed that Lagos State remained the highest recipient of gross FAAC allocations with ₦477.05 billion, while Nasarawa State received the least at ₦72.78 billion. It also observed that VAT has become increasingly important in determining allocations, particularly benefiting states with stronger commercial activities and higher consumption levels.

Agora Policy projected that if the current revenue trend continues through the second half of the year, 2026 could surpass the record gross FAAC revenue of ₦35.81 trillion posted in 2025. The report also highlighted a sharp decline in refunds and a significant increase in savings and intervention funds, with major allocations directed towards national security and infrastructure development.