FAAC allocates N2.428 trillion of September revenue to federal, state and local governments

Overall revenue picture The Federation Account Allocation Committee (FAAC) reported that gross revenue generated in September 2026 reached N3.913 trillion. After deducting collection costs of N131.758 billion and transfers, refunds and savings totalling N1.352 trillion, the remaining distributable amount was N2.428 trillion. This figure combines N1.672 trillion of statutory revenue with N756.587 billion derived from Value Added Tax (VAT), as outlined in statements from the Office of the Accountant‑General and covered by Nairametrics, Vanguard and Daily Post.

Statutory and VAT components Statutory revenue for the month rose to N3.096 trillion, an increase of N246.384 billion over August’s N2.850 trillion, according to the FAAC communiqué. In contrast, gross VAT collections fell to N816.872 billion, down by N17.972 billion from the previous month’s N834.843 billion. After the aforementioned deductions, the distributable statutory share remained at N1.672 trillion, while the VAT share stayed at N756.587 billion.

Allocation to government tiers From the total distributable pool, the federal government received N832.242 billion. State governments were allocated N799.872 billion, and local government councils obtained N560.660 billion. The VAT portion was split with the federal government getting N75.659 billion, states receiving N416.123 billion and local councils taking N264.805 billion. The statutory portion saw the federal government allotted N756.583 billion, states N383.749 billion and local councils N295.855 billion.

Derivation revenue and mineral resources An additional N236.049 billion, representing 13 percent of mineral revenue, was distributed as derivation revenue among the benefiting states. This allocation was highlighted in the Vanguard and Daily Post reports as a separate line item within the overall distribution.

Shifts in tax source performance The FAAC release noted declines in several revenue streams, including Companies Income Tax, Capital Gains Tax, stamp duties, VAT, mineral royalties, gas‑flaring penalties and miscellaneous oil revenue. Conversely, the committee observed significant increases in Petroleum Profit Tax, Hydrocarbon Tax, petroleum royalties, import duties, Common External Tariff levies and excise duties during the same period. These contrasting trends were reported across all three sources.

Overall, the September 2026 distribution reflects a higher total amount than the N2.338 trillion shared in August, driven primarily by stronger statutory collections despite a modest dip in VAT receipts.