FAAC shares N2.43trn among FG, states, LGs

The Federation Account Allocation Committee (FAAC) has allocated N2.428 trillion among the federal government, state governments, and local government councils in October 2026. This amount is higher than the N2.338 trillion distributed in September by N90 billion. The allocation includes revenue collected in September and reflects a slight recovery after a notable decline in the previous month. According to a communiqué released following FAAC's meeting in Abuja, the total distributable revenue consists of N1.672 trillion from statutory revenue and N756.587 billion from Value Added Tax (VAT). The federal government received N832.242 billion, while the 36 state governments were allocated N799.872 billion. Local government councils received N560.660 billion, and N236.049 billion was distributed to benefiting states as 13 percent derivation revenue from mineral resources. Gross revenue for September reached N3.913 trillion, with N131.758 billion set aside as cost of collection. An additional N1.352 trillion was directed toward transfers, refunds, and savings. Gross statutory revenue rose to N3.096 trillion in September, an increase of N246.384 billion from August. However, gross VAT revenue decreased slightly to N816.872 billion from N834.843 billion in August. Statutory revenue allocation revealed that the federal government received N756.583 billion, state governments obtained N383.749 billion, and local government councils got N295.855 billion. Benefiting states also received N236.049 billion as derivation revenue. From the distributable VAT revenue, the federal government received N75.659 billion, state governments secured N416.123 billion, and local government councils received N264.805 billion. Revenue performance showed that collections from Petroleum Profit Tax, Hydrocarbon Tax, petroleum royalties, import duty, Common External Tariff levies, and excise duty saw significant increases. However, revenues from CIT, CGT, Stamp Duties, VAT, mineral royalties, gas-flaring penalties and fees, and miscellaneous oil revenue experienced considerable declines. Despite these declines, the increase in statutory revenue helped raise total distributable revenue. The October allocation marked a modest recovery from the sharp drop in September, though it still lagged behind the peak recorded in August. The allocation was also lower than the amount distributed in July but higher than that in June. The FAAC communiqué noted that gross statutory revenue increased by N246.384 billion, or approximately 8.6 percent, to N3.096 trillion in September from N2.850 trillion in August. The improvement came after a sharp contraction in the prior month, when statutory revenue dropped by N1.508 trillion from N4.359 trillion recorded in July. Gross VAT collections declined by N17.972 billion, or 2.2 percent, to N816.872 billion in September from N834.843 billion in August. The decline reversed the increase recorded in August, when VAT receipts rose by N40.875 billion from N793.968 billion in July.