By Boluwatife Oshadiya | March 15, 2026
Key Points
- FAAC distributes ₦1.894 trillion February revenue to federal, state and local governments
- Federal Government receives ₦675.088 billion, states get ₦651.525 billion
- Gross statutory and VAT revenues decline compared with January collections
Main Story
Nigeria’s Federation Account Allocation Committee (FAAC) has distributed a total of ₦1.894 trillion as February 2026 revenue to the Federal Government, state governments and local government councils, according to an official communiqué issued after the committee’s latest meeting in Abuja.
The distribution was confirmed in a statement released by Bawa Mokwa, Director of Press and Public Relations in the Office of the Accountant-General of the Federation. The total distributable amount comprised ₦1.274 trillion in statutory revenue and ₦619.119 billion from Value Added Tax (VAT) collections.
According to the communiqué, the Federal Government received ₦675.088 billion, while state governments collectively received ₦651.525 billion. Nigeria’s 774 local government councils received ₦456.467 billion from the allocation. In addition, ₦110.949 billion representing the 13% derivation revenue from mineral resources was distributed to oil-producing states.
Before deductions, total revenue available for distribution stood at ₦2.230 trillion. From this amount, ₦77.302 billion was deducted as cost of collection, while ₦259.078 billion was set aside for transfers, refunds and savings.
A breakdown of the statutory revenue component shows that the Federal Government received ₦613.174 billion, states received ₦311.010 billion, and local government councils received ₦239.776 billion.
From the ₦619.119 billion VAT pool, the Federal Government received ₦61.912 billion, while states received ₦340.515 billion and local governments received ₦216.692 billion.
The FAAC communiqué also revealed a significant decline in key revenue sources compared with the previous month.
Gross statutory revenue for February stood at ₦1.561 trillion, representing a drop of ₦395.138 billion from the ₦1.957 trillion recorded in January 2026. Similarly, gross VAT revenue fell sharply to ₦668.450 billion, compared with ₦1.083 trillion recorded in January.
Revenue streams including Petroleum Profit Tax (PPT), Hydrocarbon Tax, Companies Income Tax, Capital Gains Tax, Stamp Duties and VAT all declined during the period. However, oil and gas royalties and excise duties recorded notable increases, while receipts from import duties and the Common External Tariff (CET) also rose marginally.
What’s Being Said
“The revenue distribution reflects the statutory formula for sharing federally collected revenues among the three tiers of government,” the Office of the Accountant-General said in the official communiqué.
Public finance analysts say fluctuations in monthly FAAC allocations are common due to changes in oil revenue, tax receipts and foreign trade duties.
What’s Next
- State governments will incorporate the allocations into March budgetary spending and salary payments
- Fiscal authorities will continue to monitor oil production levels and tax collections, which significantly influence FAAC revenues
- Upcoming federal revenue reforms and tax policy changes could reshape revenue distribution patterns in future allocations
The Bottom Line: FAAC allocations remain the financial backbone of Nigeria’s public sector, and the recent decline in tax and VAT collections highlights the government’s continued vulnerability to fluctuations in oil earnings and macroeconomic conditions.
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