KEY POINTS
- FAAC allocated ₦2.428 trillion in September 2026 revenue to the Federal Government, 36 states and 774 local government councils.
- The distributable amount comprised ₦1.672 trillion in statutory revenue and ₦756.587 billion from Value Added Tax.
- Gross revenue available for distribution stood at ₦3.913 trillion, with deductions, transfers, refunds and savings accounting for substantial amounts.
- Statutory revenue increased by ₦246.384 billion from August, while gross VAT revenue declined by ₦17.972 billion.
MAIN STORY
The Federation Account Allocation Committee (FAAC) has shared ₦2.428 trillion in September 2026 revenue among the Federal Government, the 36 state governments and the 774 local government councils in Nigeria.
The Director of Press and Public Relations at the Office of the Accountant-General of the Federation (OAGF), Bawa Mokwa, disclosed this in a statement on Thursday in Abuja, saying the allocation was approved at FAAC’s October meeting.
The distributable revenue comprised ₦1.672 trillion in statutory revenue and ₦756.587 billion from Value Added Tax (VAT).
According to the statement, total gross revenue of ₦3.913 trillion was available for distribution in September. This was reduced by ₦131.758 billion in collection costs, while transfers, refunds and savings amounted to ₦1.352 trillion.
Gross statutory revenue stood at ₦3.096 trillion, representing an increase of ₦246.384 billion from the ₦2.850 trillion recorded in August 2026.
Mokwa said gross VAT revenue, however, declined to ₦816.872 billion in September from ₦834.843 billion in August, a decrease of ₦17.972 billion.
Of the total distributable revenue of ₦2.428 trillion, the Federal Government received ₦832.242 billion, while the state governments received ₦799.872 billion. The local government councils were allocated ₦560.660 billion, and ₦236.049 billion was shared among eligible states as derivation revenue, representing 13 per cent of mineral revenue.
A breakdown of the statutory revenue allocation showed that the Federal Government received ₦756.583 billion, while the state governments received ₦383.749 billion. The local government councils received ₦295.855 billion, with the benefiting states receiving ₦236.049 billion as derivation revenue.
From the ₦756.587 billion distributable VAT revenue, the Federal Government received ₦75.659 billion, the state governments received ₦416.123 billion, and the local government councils received ₦264.805 billion.
The revenue performance varied across tax and oil-related sources during the month. Mokwa said Petroleum Profit Tax, Hydrocarbon Tax, petroleum royalties, import duty, Common External Tariff levies and excise duty recorded significant increases.
In contrast, Companies Income Tax, Capital Gains Tax, Stamp Duties Tax, VAT, mineral royalties, gas-flaring penalties, rental gas-flaring fees and miscellaneous oil revenue declined considerably.
THE ISSUES
The September allocation highlights the importance of statutory revenue and VAT to the funding available to Nigeria’s three tiers of government. The increase in gross statutory revenue provided a boost to the month’s receipts, while the decline in gross VAT revenue indicated weaker collections from that source compared with August.
The allocations provide funds for government operations and public services at federal, state and local levels. However, the amount available to each tier is also affected by statutory sharing arrangements, derivation payments and deductions made before distribution.
WHAT’S BEING SAID
- “This was higher than the sum of N2.850 trillion received in the preceeding month by N246.384 billion.” – Bawa Mokwa, Director of Press and Public Relations, OAGF
- “Also, Companies Income Tax (CIT), CGT & SDT, Value Added Tax (VTA), Mineral Royalties, and Gas Flared Penalty, Rental Gas Flared Fee and Misc. Oil Revenue decreased considerably. – ”Bawa Mokwa, Director of Press and Public Relations, OAGF
WHAT’S NEXT
The next FAAC meeting will provide an update on revenue available for distribution and how collections from statutory sources, VAT and other revenue streams compare with the September figures.
BOTTOM LINE
FAAC distributed ₦2.428 trillion in September revenue among the Federal Government, state governments and local councils. While gross statutory revenue increased from August, gross VAT revenue declined, reflecting mixed performance across major revenue sources.
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