Nigeria’s revenue shared among the Federal Government, state governments and local councils rose to ₦31.46 trillion between January and September 2026, exceeding the full-year collections recorded in 2021, 2022, 2023 and 2024.
The figures were contained in a report by Agora Policy titled Ten Insights from FAAC Disbursements for January–September 2026, which examined revenue generation, deductions and allocations among the three tiers of government.
The nine-month total surpassed the ₦28.74 trillion generated in the whole of 2024 and represented about 88 per cent of the ₦35.81 trillion recorded in 2025.
However, the report cautioned that the increase was measured in nominal terms and did not account for inflation or the declining purchasing power of the naira.
How Much Did Each Tier of Government Receive?
During the first nine months of 2026, the Federal Government received approximately ₦7.35 trillion, while state governments received ₦7.01 trillion and local governments got ₦4.92 trillion from the revenue distributions.
Oil-producing states also received ₦1.53 trillion through the 13 per cent derivation principle, which allocates a share of oil revenue to states where the resources are extracted.
The report stated that total gross revenue stood at ₦31.46 trillion, comprising ₦24.25 trillion from statutory revenue and ₦7.21 trillion from Value Added Tax (VAT).
Statutory revenue accounted for 77.1 per cent of the total, while VAT contributed the remaining 22.9 per cent.
Billions Deducted Before Distribution
Despite the substantial revenue generated, only ₦20.36 trillion was available for distribution before augmentation.
The report showed that ₦11.10 trillion, representing 35 per cent of gross receipts, was deducted for savings, interventions, refunds, transfers and collection costs.
An additional ₦450 billion in augmentation brought the total amount distributed to ₦20.81 trillion during the period.
The deductions have highlighted the importance of examining not only how much revenue the federation generates but also how much becomes available for allocation to the different tiers of government.
Revenue Growth Slows Despite Higher Collections
Agora Policy reported that gross FAAC revenue increased by ₦3.51 trillion, or 12.6 per cent, compared with the ₦27.95 trillion recorded between January and September 2025.
Although collections continued to rise, the pace of growth was slowing. The increase recorded during the first nine months of 2026 was less than half the ₦8.97 trillion rise reported during the corresponding period of 2024.
The report attributed part of the sharp increase in 2024 to the foreign exchange and petrol subsidy reforms introduced in 2023. It also noted that tax reforms and higher oil prices associated with the conflict in Iran might have supported revenue growth in 2026, although the precise contributions of these factors could not be established from aggregate figures alone.
Nigeria Could Record ₦41.95tn in 2026
The report estimated that if the average monthly revenue recorded during the first nine months continued through December, full-year gross FAAC revenue could reach approximately ₦41.95 trillion.
However, it stressed that this was a simple annualised calculation rather than a forecast, as revenue can fluctuate due to seasonal factors, changes in crude oil prices and movements in the exchange rate.
The figures underline the significant increase in government revenue in recent years, while raising questions about how effectively the funds are translated into better public services, infrastructure and improved living conditions for Nigerians.
