FAAC: Fed. Govt, States, LGs Share N2.428tr September Revenue

The three tiers of government have shared N2.428 trillion revenue generated by the Federation in September 2026, according to the Federation Account Allocation Committee (FAAC).

The amount was shared at the committee’s October meeting in Abuja, with the Federal Government receiving N832.242 billion, state governments getting N799.872 billion and local government councils receiving N560.660 billion. The beneficiary states of the 13 percent derivative also received N236.049 billion as derivation revenue from mineral resources.

The Director of Press and Public Relations in the Office of the Accountant-General of the Federation (OAGF), Bawa Mokwa, disclosed this in a statement on the outcome of the meeting yesterday in Abuja.

The total distributable revenue comprised N1.672 trillion from statutory revenue and N756.587 billion from Value Added Tax (VAT).

According to the communiqué issued by FAAC, the Federation generated gross revenue of N3.913 trillion in September. However, N131.758 billion was deducted as the cost of collecting the revenue, while N1.352 trillion went into transfers, refunds and savings.
The figures show that the amount shared among the three tiers of government was lower than the gross revenue available for the month after the various deductions and other obligations were taken into account.

A breakdown of the statutory revenue showed that the Federal Government received N756.583 billion, while the state governments got N383.749 billion. The local government councils received N295.855 billion, while N236.049 billion was paid to the benefiting states as their 13 per cent derivation share of mineral revenue.

From the N756.587 billion distributable VAT revenue, the Federal Government received N75.659 billion, state governments got N416.123 billion and local government councils received N264.805 billion.

The allocation figures show that state governments and local government councils received the larger shares of the distributable VAT revenue, while the Federal Government received a smaller portion.
The communiqué also showed that gross statutory revenue rose in September, while VAT revenue declined during the period.

Gross statutory revenue stood at N3.096 trillion in September, compared with N2.850 trillion recorded in August. The increase of N246.384 billion represented a rise in revenue available from statutory sources.
In contrast, gross VAT revenue fell to N816.872 billion in September from N834.843 billion in August, representing a decline of N17.972 billion.

The difference in the performance of the two revenue sources means that the increase in statutory revenue was accompanied by a reduction in VAT receipts during the month.

FAAC attributed the changes in revenue performance to increases in some tax and petroleum-related revenue sources, alongside declines in others.

Petroleum Profit Tax, Hydrocarbon Tax, petroleum royalties, import duty, Common External Tariff (CET) levies and excise duty recorded significant increases in September.

However, Companies Income Tax (CIT), Capital Gains Tax (CGT), Stamp Duties Tax (SDT), VAT, mineral royalties, gas-flaring penalties, rental gas-flaring fees and miscellaneous oil revenue declined during the period.