FAAC Shares N2.428 Trillion Among Three Tiers As VAT Revenue Declines By N17.9 Billion

The Federation Account Allocation Committee has shared N2.428 trillion among the Federal Government, state governments and local government councils as revenue accrued to the Federation Account and VAT proceeds for September 2026.

The amount is N90 billion higher than the N2.338 trillion shared in August, representing an increase of about 3.85 per cent, despite significant declines in Value Added Tax and several other revenue sources.

The total distributable revenue comprised N1.672 trillion from statutory revenue and N756.587 billion from VAT.

The Federal Government received N832.242 billion, while state governments got N799.872 billion. Local government councils received N560.660 billion, while N236.049 billion was shared among benefiting states as 13 per cent derivation revenue from mineral resources.

The allocation was announced in a communiqué issued after the October 2026 FAAC meeting held in Abuja, chaired by the Accountant-General of the Federation, Shamsudeen Ogunjimi.

According to the statement issued by the Director of Press and Public Relations at the Office of the Accountant-General of the Federation, Bawa Mokwa, total gross revenue of N3.913 trillion was available in September 2026.

From this amount, N131.758 billion was deducted as cost of collection, while N1.352 trillion went into transfers, refunds and savings.

Gross statutory revenue increased to N3.096 trillion in September from N2.850 trillion in August, representing an increase of N246.384 billion.

However, gross VAT revenue declined to N816.872 billion from N834.843 billion in the preceding month, a decrease of N17.972 billion.

A breakdown of the statutory revenue allocation showed that the Federal Government received N756.583 billion, state governments got N383.749 billion, while local government councils received N295.855 billion. The benefiting states also received N236.049 billion as derivation revenue.

From the distributable VAT revenue, the Federal Government received N75.659 billion, state governments got N416.123 billion, while local government councils received N264.805 billion.

The communiqué disclosed that revenue from Petroleum Profit Tax, Hydrocarbon Tax, petroleum royalties, import duty, Common External Tariff levies and excise duty increased significantly during the month.

However, collections from Companies Income Tax, Capital Gains Tax, Stamp Duties, VAT, mineral royalties, gas-flaring penalties and fees, and miscellaneous oil revenue declined considerably.

The increase in statutory revenue helped lift total distributable revenue despite the decline in VAT receipts and other revenue sources.

The September allocation marks a modest recovery from the sharp decline recorded in August, when FAAC allocations fell by N669 billion, or 22.2 per cent, from the record N3.007 trillion shared in July.

Despite the improvement, the October allocation remained N579 billion, or 19.3 per cent, below the August peak, which was the highest monthly FAAC distribution in reviewed records dating back to 2019.