FAAC shares N2.43trn among FG, states, LGs
FAAC Distributes N2.428 Trillion Amid Declining Tax Collections
By Emma Ujah
The Federation Account Allocation Committee (FAAC) has allocated N2.428 trillion to the three tiers of government, which includes the Federal Government, state governments, and local government councils. This allocation comes in light of significant declines in collections from Companies Income Tax (CIT), Capital Gains Tax (CGT), Stamp Duties, and Value Added Tax (VAT).
The current distribution represents a N90 billion increase from the N2.338 trillion shared in August. The amount reflects revenue accrued to the Federation Account and VAT proceeds for September 2026.
A communiqué released after FAAC’s meeting in Abuja revealed that the total distributable revenue comprised N1.672 trillion from statutory revenue and N756.587 billion from VAT.
In the latest distribution, the Federal Government received N832.242 billion, while state governments were allocated N799.872 billion. Local government councils received N560.660 billion, and an additional N236.049 billion was distributed to benefiting states as 13 percent derivation revenue from mineral resources.
The communiqué noted that gross revenue for September stood at N3.913 trillion. After N131.758 billion was deducted for cost of collection, and N1.352 trillion allocated for transfers, refunds, and savings, the remaining statutory revenue totalled N3.096 trillion, up from N2.850 trillion in August—an increase of N246.384 billion. However, gross VAT revenue decreased to N816.872 billion from N834.843 billion in the previous month, marking a decline of N17.972 billion.
A detailed breakdown of the statutory revenue allocation showed that the Federal Government received N756.583 billion, state governments received N383.749 billion, and local government councils were allocated N295.855 billion. The benefiting states also received N236.049 billion in derivation revenue.
From the distributable VAT revenue, the Federal Government received N75.659 billion, while state governments were allocated N416.123 billion, and local government councils received N264.805 billion.
On revenue performance, FAAC reported significant increases in collections from Petroleum Profit Tax, Hydrocarbon Tax, petroleum royalties, import duty, Common External Tariff levies, and excise duty. Conversely, revenue from CIT, CGT, Stamp Duties, VAT, mineral royalties, gas-flaring penalties and fees, as well as miscellaneous oil revenue, showed considerable declines.
Officials stated that the increase in statutory revenue provided a boost to the total distributable revenue, even amidst the decrease in VAT receipts and other revenue sources.
