FG, States, LGs Share ₦1.89 Trillion FAAC Allocation

Federal Government, States, LGs Share ₦1.89 Trillion FAAC Allocation
Federal Government received ₦675.08 billion from total distributable revenue allocation.
VAT and statutory revenues recorded significant declines compared with January figures.

The Federation Account Allocation Committee has shared a total of ₦1.89 trillion as revenue for February 2026 among the federal, state and local governments.

The revenue was distributed during the March 2026 FAAC meeting held in Abuja on Friday. The meeting was chaired by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun.

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EKO HOT BLOG reports that according to a statement issued by the Federal Ministry of Finance, the total gross revenue available for February stood at ₦2.23 trillion before statutory deductions were made.

From the total distributable revenue of ₦1.89 trillion, the Federal Government received ₦675.08 billion, while state governments shared ₦651.52 billion. The 774 local government councils received ₦456.46 billion, while ₦110.94 billion was allocated to oil producing states as 13 per cent derivation revenue from mineral resources.

The committee explained that from the gross revenue of ₦2.23 trillion, ₦77.30 billion was deducted as the cost of revenue collection, while ₦259.07 billion was set aside for transfers, interventions and refunds before the remaining balance was shared among the three tiers of government.

The communiqué also showed that revenue from value added tax recorded a sharp decline during the period under review.

According to FAAC, gross VAT revenue for February stood at ₦668.45 billion, compared with ₦1.08 trillion recorded in January. The figures indicate a drop of about ₦414.71 billion in VAT collections.

From the VAT revenue, ₦26.73 billion was deducted as the cost of collection, while ₦22.59 billion was allocated for transfers, interventions and refunds. After the deductions, the remaining ₦619.11 billion was shared among the three tiers of government.

Out of this amount, the Federal Government received ₦61.91 billion, state governments received ₦340.51 billion, while local government councils received ₦216.69 billion.

The committee also disclosed that statutory revenue declined compared with the previous month. Gross statutory revenue for February stood at ₦1.56 trillion, lower than the ₦1.95 trillion recorded in January, representing a decrease of ₦395.13 billion.

From the statutory revenue, ₦50.56 billion was deducted as cost of collection, while ₦236.48 billion was set aside for transfers, interventions and refunds.

After the deductions, the remaining ₦1.27 trillion was distributed among the three tiers of government. The Federal Government received ₦613.17 billion, states received ₦311.01 billion, while local governments received ₦239.77 billion. Oil producing states also received ₦110.94 billion as derivation revenue representing 13 per cent of mineral resources.

FAAC further noted that revenue from oil and gas royalties as well as excise duties recorded increases during the month.

Federal Government, States, LGs Share ₦1.89 Trillion FAAC Allocation

However, several key revenue streams recorded declines, including petroleum profit tax, hydrocarbon tax, companies income tax, capital gains tax, stamp duties and value added tax.

The communiqué also indicated that import duties and the common external tariff recorded slight increases during the period.