FAAC Shares N2.428trn Among FG, States, LGs as Statutory Revenue Rises

The Federation Account Allocation Committee (FAAC) has shared N2.428 trillion among the Federal Government, state governments and local government councils as revenue accrued to the Federation Account for September 2026.

The allocation followed the committee’s October meeting in Abuja, according to a statement issued by Bawa Mokwa, Director of Press and Public Relations at the Office of the Accountant-General of the Federation.

The distributable revenue comprised N1.672 trillion in statutory revenue and N756.587 billion generated from Value Added Tax (VAT).

Under the allocation, the Federal Government received N832.242 billion, while the 36 state governments received N799.872 billion. The 774 local government councils were allocated N560.660 billion.

Oil-producing states also received N236.049 billion as 13 per cent derivation revenue from mineral resources.

According to the FAAC communiqué, total gross revenue available for September stood at N3.913 trillion. Of this amount, N131.758 billion was deducted as the cost of revenue collection, while N1.352 trillion was allocated to transfers, refunds and savings.

The distributable amount represents the balance available for sharing after applicable deductions and adjustments.

Gross statutory revenue rose to N3.096 trillion in September, compared with N2.850 trillion recorded in August, representing an increase of N246.384 billion.

However, gross VAT revenue declined to N816.872 billion in September from N834.843 billion in August, a decrease of approximately N17.972 billion.

A breakdown of the statutory revenue allocation showed that the Federal Government received N756.583 billion, while state governments received N383.749 billion. Local government councils received N295.855 billion, with N236.049 billion distributed to benefiting states as derivation revenue.

From the N756.587 billion distributable VAT revenue, the Federal Government received N75.659 billion, state governments received N416.123 billion, and local government councils received N264.805 billion.

The committee reported increases in receipts from Petroleum Profit Tax, Hydrocarbon Tax, petroleum royalties, import duty, Common External Tariff levies and excise duty during September.

Conversely, revenue from Companies Income Tax, Capital Gains Tax, Stamp Duties Tax, VAT, mineral royalties, gas-flaring penalties, gas-flaring fees and miscellaneous oil revenue declined.

The latest distribution provides funding to the three tiers of government for their respective responsibilities, including infrastructure, public services, administration and development programmes.

The figures also highlight the differing performance of revenue sources, with stronger statutory collections offsetting the decline in gross VAT receipts during the period.