The Federation Account Allocation Committee (FAAC) has shared ₦2.428 trillion among the Federal Government, state governments and local government councils as revenue for September 2026, despite declining collections from several major tax sources.
The allocation, announced after the committee’s October meeting in Abuja, was higher than the ₦2.338 trillion distributed in August by approximately ₦90 billion.
According to the communiqué, the total distributable revenue comprised ₦1.672 trillion from statutory revenue and ₦756.587 billion generated through Value Added Tax (VAT).
How the money was shared
The Federal Government received ₦832.242 billion, while the 36 state governments received ₦799.872 billion collectively.
Local government councils received ₦560.660 billion, while eligible states shared an additional ₦236.049 billion as 13 per cent derivation revenue from mineral resources.
Statutory revenue rises, VAT collections fall
FAAC reported that gross statutory revenue increased to ₦3.096 trillion in September from ₦2.850 trillion in August, representing an increase of ₦246.384 billion.
However, gross VAT revenue declined to ₦816.872 billion from ₦834.843 billion in the preceding month, a drop of ₦17.972 billion.
Revenue from Petroleum Profit Tax, Hydrocarbon Tax, petroleum royalties, import duties, Common External Tariff levies and excise duties recorded significant increases during the period.
In contrast, collections from Companies Income Tax, Capital Gains Tax, Stamp Duties, VAT, mineral royalties, gas-flaring penalties and fees, and miscellaneous oil revenue declined.
Where the revenue went
FAAC disclosed that total gross revenue available for distribution stood at ₦3.913 trillion.
Of this amount, ₦131.758 billion was deducted as the cost of collection, while ₦1.352 trillion went towards transfers, refunds and savings before the remaining distributable funds were shared among the three tiers of government.
The monthly allocations are important to government operations across Nigeria, as federal, state and local authorities depend on Federation Account revenue to finance infrastructure, public services, salaries and other expenditure.
The latest figures highlight a mixed revenue performance, with stronger statutory collections helping to offset the decline in VAT and several other revenue streams.
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