Nigeria’s Federal Government, the 36 states and local government councils shared N2.428 trillion from Federation Account revenue for September 2026, following the October meeting of the Federation Account Allocation Committee in Abuja.
Distributable revenue and deductions
The allocation was made from September collections and included N1.672 trillion in statutory revenue available for distribution, alongside N756.587 billion in distributable Value Added Tax revenue.
- Total gross revenue available for September 2026 stood at N3.913 trillion.
- Collection costs accounted for deductions of N131.758 billion.
- Transfers, refunds and savings absorbed a further N1.352 trillion.
Gross statutory receipts reached N3.096 trillion during September, an increase of N246.384 billion from N2.850 trillion collected in the previous month.
VAT collections moved in the opposite direction. Gross VAT revenue amounted to N816.872 billion in September, down N17.972 billion from the N834.843 billion recorded in August 2026.
Distribution among the three tiers of government
Out of the total N2.428 trillion distributed through FAAC, the Federal Government received N832.242 billion, while state governments were allocated N799.872 billion. Local government councils received N560.660 billion.
An additional N236.049 billion was paid to eligible states as derivation revenue, representing 13% of mineral revenue.
- Federal Government: N832.242 billion
- State governments: N799.872 billion
- Local government councils: N560.660 billion
- Derivation allocation to benefiting states: N236.049 billion
Statutory revenue and VAT allocations
From the N1.672 trillion distributable statutory revenue pool, the Federal Government took N756.583 billion. States received N383.749 billion and local councils obtained N295.855 billion.
Benefiting states also received N236.049 billion from the 13% derivation component of mineral revenue.
The N756.587 billion distributable VAT pool was allocated as follows:
- Federal Government: N75.659 billion
- State governments: N416.123 billion
- Local government councils: N264.805 billion
Revenue trends during September
Several oil and trade-related revenue lines improved during the month. Petroleum Profit Tax, Hydrocarbon Tax, petroleum royalties, import duties, CET levies and excise duties all posted substantial gains.
However, collections declined across a number of other categories, including Companies Income Tax, Capital Gains Tax, Stamp Duties Tax, VAT, mineral royalties, gas-flaring penalties, rental gas-flaring charges and miscellaneous oil revenue.
