FG, States, LGs Share N2.43 Trillion as FAAC Reports Mixed Revenue Performance

The Federal, state and local governments have shared N2.428 trillion in revenue for September 2026, following an increase in statutory collections that offset declines in Value Added Tax (VAT) and several other revenue sources.

The Federation Account Allocation Committee (FAAC) announced the distribution in a communiqué issued after its meeting in Abuja on Thursday.

The latest allocation represents an increase of N90 billion over the N2.338 trillion distributed in August.

The total distributable amount comprised N1.672 trillion from statutory revenue and N756.587 billion from VAT proceeds, according to the committee.

Of the total allocation, the Federal Government received N832.242 billion, state governments were allocated N799.872 billion, and local government councils received N560.660 billion. An additional N236.049 billion went to benefiting states as 13 per cent derivation revenue from mineral resources.

FAAC reported that gross revenue for September amounted to N3.913 trillion. The figure included deductions of N131.758 billion for collection costs and N1.352 trillion for transfers, refunds and savings.

Statutory Revenue Gains N246bn

The committee disclosed that gross statutory revenue climbed to N3.096 trillion in September from N2.850 trillion in August, an increase of N246.384 billion.

The improvement helped boost the total distributable revenue despite weaker collections from some major taxes.

Gross VAT revenue, however, declined by N17.972 billion, dropping from N834.843 billion in August to N816.872 billion in September.

Under the statutory revenue-sharing arrangement, the Federal Government received N756.583 billion, while state governments were allocated N383.749 billion. Local government councils received N295.855 billion, and benefiting states got N236.049 billion as mineral-resource derivation revenue.

The VAT distribution saw the Federal Government receive N75.659 billion, with state governments allocated N416.123 billion and local government councils receiving N264.805 billion.

CIT, Stamp Duties and VAT Collections Decline

FAAC said revenue collections from Petroleum Profit Tax, Hydrocarbon Tax, petroleum royalties, import duty, Common External Tariff levies and excise duty recorded significant increases during September.

Nevertheless, collections from Companies Income Tax (CIT), Capital Gains Tax (CGT), Stamp Duties and VAT fell considerably.

The committee also reported declines in mineral royalties, gas-flaring penalties and fees, and miscellaneous oil revenue.

The September distribution therefore reflected a mixed revenue performance, with stronger statutory receipts helping the government tiers share more money than they received in the previous month, despite falling VAT revenue and weaker collections from several other sources.

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