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FAAC distributes ₦2.428 trillion September 2026 revenue among the Federal Government, states and local government councils.
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Allocation rises from ₦2.338 trillion shared in the preceding month as gross statutory revenue climbs to ₦3.096 trillion.
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Federal Government receives ₦832.242 billion, states ₦799.872 billion and local councils ₦560.660 billion.
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VAT revenue falls by ₦17.972 billion as oil taxes, petroleum royalties, import duty and excise duty record increases.
October 15, (THEWILL) – The Federation Account Allocation Committee (FAAC) has shared ₦2.428 trillion in September 2026 revenue among the Federal Government, state governments and local government councils, an increase from the ₦2.338 trillion distributed in the preceding month.
According to a communiqué issued at the end of the committee’s meeting in Abuja, the ₦2.428 trillion distributable revenue comprised ₦1.672 trillion in statutory revenue and ₦756.587 billion from Value Added Tax (VAT).
FAAC said gross revenue generated during September stood at ₦3.913 trillion, from which ₦131.758 billion was deducted as cost of collection, while ₦1.352 trillion went to transfers, refunds and savings.
The latest distribution represents an increase of about ₦90 billion over the ₦2.338 trillion shared in the previous month, driven largely by stronger statutory revenue receipts.
Gross statutory revenue rose to ₦3.096 trillion in September, representing an increase of ₦246.384 billion over the ₦2.850 trillion recorded in August.
VAT receipts, however, declined during the period. According to the communiqué, gross VAT revenue stood at ₦816.872 billion in September, compared with ₦834.843 billion in August, representing a decrease of ₦17.972 billion.
FG Gets ₦832.242bn, States ₦799.872bn
A breakdown of the ₦2.428 trillion distributable revenue showed that the Federal Government received ₦832.242 billion, while the 36 state governments collectively received ₦799.872 billion.
Local government councils received ₦560.660 billion, while ₦236.049 billion was distributed to benefiting states as 13 percent derivation revenue from mineral resources.
From the ₦1.672 trillion distributable statutory revenue, the Federal Government received ₦756.583 billion, while state governments received ₦383.749 billion.
Local government councils received ₦295.855 billion, while the benefiting states received ₦236.049 billion as 13 per cent derivation revenue.
The VAT component produced a different distribution pattern, with states taking the largest share.
From the ₦756.587 billion distributable VAT revenue, the Federal Government received ₦75.659 billion, while states received ₦416.123 billion and local government councils got ₦264.805 billion.
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Oil, Customs Receipts Rise
FAAC said the increase in statutory revenue was supported by improved receipts from several petroleum and customs-related sources.
Revenue from Petroleum Profit Tax, Hydrocarbon Tax, petroleum royalties, import duty, Common External Tariff levies and excise duty increased significantly during the period.
However, the performance was not uniform across all federally collected revenue streams.
Receipts from Companies Income Tax, Capital Gains Tax, Stamp Duties, VAT, mineral royalties, gas-flaring penalties and fees, as well as miscellaneous oil revenue, declined in September.
The figures showed that despite the fall in VAT and some other tax receipts, higher statutory collections were sufficient to lift the amount ultimately available for distribution to the three tiers of government.
September Allocation Rises By ₦90bn
The ₦2.428 trillion September allocation is about ₦90 billion higher than the ₦2.338 trillion distributed in the preceding month.
The increase comes as federal, state and local governments continue to depend heavily on monthly FAAC disbursements to meet recurrent expenditure, fund infrastructure and execute other government programmes.
FAAC serves as the platform through which revenues accruing to the Federation Account are distributed among the three tiers of government in accordance with the country’s revenue-sharing framework.
Major inflows into the Federation Account include petroleum-related taxes and royalties, Companies Income Tax, customs and excise receipts and other federally collected revenues, while VAT proceeds are distributed under a separate formula.
Oil and mineral-producing states also receive 13 percent derivation from revenue generated from natural resources in their territories, as provided under Nigeria’s fiscal framework.
Felix Ifijeh is a journalist with years of professional reporting experience. Known for his keen news sense, compelling storytelling and commitment to accurate, impactful reporting, he has built a reputation for turning leads into clear, engaging, and well-structured reports that resonate with readers. His work reflects deep newsroom experience and a commitment to accurate, impactful journalism.
