The Federation Account Allocation Committee (FAAC) has shared a total sum of ₦2.428 trillion among the Federal Government, State Governments, and Local Government Councils as revenue accrued for the month of September 2026.

The allocation was finalized during FAAC's monthly meeting held in Abuja on Thursday, October 15, 2026, recording an increase of ₦90 billion compared to the ₦2.338 trillion disbursed in August.

According to the official communiqué, gross revenue for the month stood at ₦3.913 trillion. Out of this total, ₦131.758 billion was deducted for cost of collection, while ₦1.352 trillion was allocated to transfers, refunds, and savings.

The total distributable fund comprised ₦1.672 trillion from statutory revenue and ₦756.587 billion from Value Added Tax (VAT) proceeds.
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Distribution Breakdown
1. Overall Revenue Allocation
Federal Government: Received ₦832.242 billion.

State Governments: Received ₦799.872 billion.

Local Government Councils: Received ₦560.660 billion.

13% Derivation Fund: ₦236.049 billion was shared among oil-producing states as derivation revenue from mineral resources.

2. Statutory Revenue (₦1.672 Trillion Total)
Statutory revenue rose by ₦246.384 billion to reach ₦3.096 trillion in September, up from ₦2.850 trillion in August:

Federal Government: ₦756.583 billion.

State Governments: ₦383.749 billion.

Local Government Councils: ₦295.855 billion.

Derivation Allocation: ₦236.049 billion.

3. Value Added Tax (VAT) Proceeds (₦756.587 Billion Total)
Gross VAT revenue fell by ₦17.972 billion to ₦816.872 billion from August’s ₦834.843 billion:

Federal Government: ₦75.659 billion.

State Governments: ₦416.123 billion.

Local Government Councils: ₦264.805 billion.

Revenue Performance Trends
FAAC noted that the month recorded significant increases in revenues from Petroleum Profit Tax (PPT), Hydrocarbon Tax, petroleum royalties, import duty, Common External Tariff (CET) levies, and excise duties.

However, these gains were partially offset by a decline in collections from Companies Income Tax (CIT), Capital Gains Tax (CGT), Stamp Duties, Value Added Tax (VAT), mineral royalties, gas-flaring penalties, and miscellaneous oil revenues.

The Federation Account Allocation Committee convenes monthly to review collections made by revenue-generating agencies—such as the Federal Inland Revenue Service (FIRS), Nigeria Customs Service (NCS), and NNPCL—and distribute statutory allocations according to constitutional revenue-sharing formulas.

Monthly federal allocations remain a vital financial lifeline for state and local governments across Nigeria, covering civil service payrolls, capital projects, and social service funding.


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