FAAC Shares ₦10.46 Trillion To FG, States, LGs In Five Months
Federation Revenue Tops ₦10 Trillion
THE Federation Account Allocation Committee (FAAC) distributed a total of ₦10.456 trillion to the Federal Government, the 36 state governments, the 774 local government councils and oil-producing states during its first five allocation meetings of 2026, reflecting sustained growth in federation revenue despite fluctuations in Value Added Tax (VAT) and customs collections.
An analysis of official FAAC communiqués covering the January to May 2026 revenue cycle showed that distributable revenue rebounded after a slight decline in February and exceeded ₦2 trillion consistently from March, reaching a record ₦2.30 trillion at the June FAAC meeting, where May revenues were shared.
Federal, State and Local Governments Receive Largest Shares
Of the total distributable revenue, the Federal Government received ₦3.724 trillion, while the 36 states shared ₦3.547 trillion.
The 774 local government councils collectively received ₦2.513 trillion, while oil-producing states earned ₦673.177 billion as the constitutionally mandated 13 per cent derivation from mineral revenues.
Together, allocations to the three tiers of government accounted for more than 93 per cent of the distributable revenue during the five-month period.
Monthly Allocations Show Upward Trend
The five allocation cycles comprised ₦1.969 trillion shared in January from December 2025 earnings, ₦1.894 trillion from February revenues, ₦2.036 trillion from March, ₦2.257 trillion from April and a record ₦2.30 trillion from May revenues.
Although February witnessed a temporary decline due to weaker collections from Value Added Tax (VAT), Companies Income Tax (CIT), Petroleum Profit Tax (PPT) and Hydrocarbon Tax, subsequent months recorded steady improvements.
According to FAAC data, January’s gross revenue stood at ₦2.585 trillion, while February generated ₦2.230 trillion before deductions for collection costs, transfers, refunds and savings.
By April and May, stronger statutory revenues significantly boosted overall distributable income despite continued volatility in VAT and customs receipts.
Oil Revenue Sustains Federation Earnings
The analysis showed that rising statutory revenues, particularly from Companies Income Tax, Petroleum Profit Tax, Hydrocarbon Tax, Capital Gains Tax, Stamp Duties and oil and gas royalties, largely compensated for declines in VAT, import duty and excise duty collections.
Gross statutory revenue increased from ₦2.378 trillion in April to ₦2.652 trillion in May, representing an increase of approximately 11.5 per cent.
Although gross VAT receipts fell from ₦806.617 billion to ₦743.668 billion over the same period, stronger petroleum-related revenues ensured that federation allocations remained above the ₦2 trillion mark.
Fiscal Stability Remains Critical
FAAC allocations remain the principal source of revenue for most state and local governments, making the committee’s monthly disbursements central to public sector financing and service delivery across the country.
The latest figures indicate that while non-oil tax collections remain uneven, improved statutory revenues—particularly from the petroleum sector—continue to underpin federation earnings and support fiscal stability for all tiers of government.
