FAAC Disburses N1.894 Trillion to Federal, State, and Local Governments
The Federation Account Allocation Committee (FAAC) has distributed a total of N1.894 trillion from the February 2026 Federation Account revenue to the three tiers of government. The disbursement was confirmed in a communiqué issued by the Office of the Accountant-General of the Federation.
The allocated sum, decided during the March 2026 FAAC meeting in Abuja, is drawn from a total gross revenue of N2.230 trillion recorded for February. After deducting N77.302 billion for collection costs and setting aside N259.078 billion for transfers, refunds, and savings, the net distributable amount was settled.
The distributable revenue comprises two main components: N1.274 trillion in statutory revenue and N619.119 billion from Value-Added Tax (VAT).
From this pool, the federal government received N675.088 billion. State governments collectively received N651.525 billion, while local government councils were allocated N456.467 billion. Additionally, N110.949 billion, representing the 13 per cent derivation share from mineral revenue, was paid to oil-producing states.
A detailed breakdown of the statutory revenue shows the federal government took N613.174 billion, states received N311.010 billion, and local governments got N239.776 billion, with the derivation allocation distributed separately.
For the VAT component, the federal government received N61.912 billion, states were allotted N340.515 billion, and local government councils got N216.692 billion.
The report highlights a general decline in revenue compared to January 2026. Gross statutory revenue fell by N395.138 billion to N1.561 trillion, while VAT generation dropped significantly by N414.710 billion to N668.450 billion.
Meanwhile, certain revenue streams showed improvement. The communiqué noted significant increases in oil and gas royalties and excise duty during the period. Import duty and the Common External Tariff (CET) also saw marginal growth. Conversely, petroleum profit tax (PPT), hydrocarbon tax (HT), companies’ income tax (CIT), capital gains tax (CGT), and stamp duties (SDT) all declined substantially.
The monthly FAAC allocation remains a critical mechanism for distributing national revenue and funding subnational budgets across Nigeria.
