FAAC Shares ₦2.428 Trillion For September As Federal, State & Local Governments Get Allocations
By FIDELUS ZWANSON
THE Federal Government, state governments and local government councils have shared ₦2.428 trillion in revenue for September 2026. The allocation followed the October meeting of the Federation Account Allocation Committee (FAAC) in Abuja.
According to the committee’s communiqué, the distributable amount comprised ₦1.672 trillion in statutory revenue and ₦756.587 billion from Value Added Tax (VAT). Consequently, the three tiers of government received funds from both revenue streams.
The Federal Government received ₦832.242 billion, while state governments got ₦799.872 billion. Meanwhile, local government councils received ₦560.660 billion. In addition, benefiting states shared ₦236.049 billion as the 13 per cent derivation allocation from mineral revenue.
Gross Revenue & Deductions
FAAC reported that the Federation Account recorded gross revenue of ₦3.913 trillion in September. However, the government deducted ₦131.758 billion as the cost of collection, while transfers, refunds and savings amounted to ₦1.352 trillion.
These deductions reduced the amount available for distribution among the three tiers of government. As a result, the final distributable sum stood at ₦2.428 trillion.
Gross statutory revenue reached ₦3.096 trillion, up from ₦2.850 trillion in August. The increase amounted to approximately ₦246.384 billion, indicating stronger statutory receipts during the month.
VAT revenue, however, moved in the opposite direction. Gross VAT collections stood at ₦816.872 billion in September, down from ₦834.843 billion in August, a decline of approximately ₦17.972 billion.
How the Revenue Was Shared
From the ₦1.672 trillion in distributable statutory revenue, the Federal Government received ₦756.583 billion. State governments collected ₦383.749 billion, while local government councils received ₦295.855 billion.
Benefiting states also received ₦236.049 billion in derivation revenue from mineral resources. This allocation is separate from the statutory shares assigned to the three tiers of government.
Meanwhile, the ₦756.587 billion in distributable VAT revenue was divided among the Federal Government, states and local councils. The Federal Government received ₦75.659 billion, states collected ₦416.123 billion, and local government councils received ₦264.805 billion.
These figures show the different revenue streams that make up the overall FAAC allocation and the distribution among the beneficiaries.
Revenue Sources Record Mixed Results
The communiqué also reported increases in Petroleum Profit Tax, Hydrocarbon Tax, petroleum royalties, import duty, CET levies and excise duty during September.
However, Companies Income Tax, Capital Gains Tax and Stamp Duties, VAT, mineral royalties, gas-flaring penalties, gas-related fees and miscellaneous oil revenue declined.
The mixed performance suggests that revenue sources did not move in the same direction during the month. Although statutory revenue increased, VAT collections fell, underscoring the importance of tracking the performance of individual revenue categories.
Ultimately, the ₦2.428 trillion allocation provides funding for government operations across the federation. Nevertheless, the impact on public services, infrastructure and local development will depend on how effectively each tier of government manages and spends its share.
