FAAC shares N2.43trn among FG, states, LGs

The Federation Account Allocation Committee (FAAC) has shared N2.428 trillion among the three tiers of government, Federal Government, state governments and local government councils.

This comes as collections from Companies Income Tax (CIT), Capital Gains Tax (CGT), Stamp Duties and Value Added Tax (VAT) record significant decline.

The amount, representing revenue accrued to the Federation Account and VAT proceeds for September 2026, was however higher than the N2.338 trillion shared in August by N90 billion.

According to a communiqué issued at the end of FAAC’s meeting in Abuja yesterday, the total distributable revenue comprised N1.672 trillion from statutory revenue and N756.587 billion from VAT.

The Federal Government received N832.242 billion, while state governments got N799.872 billion. Local government councils received N560.660 billion, while N236.049 billion was shared among benefiting states as 13 per cent derivation revenue from mineral resources.

The communiqué disclosed that gross revenue for September stood at N3.913 trillion, out of which N131.758 billion was deducted as cost of collection, while N1.352 trillion went into transfers, refunds and savings.

Gross statutory revenue increased to N3.096 trillion in September from N2.850 trillion in August, representing an increase of N246.384 billion. However, gross VAT revenue declined to N816.872 billion from N834.843 billion in the preceding month, a decrease of N17.972 billion.

A breakdown of the statutory revenue allocation showed that the Federal Government received N756.583 billion, state governments got N383.749 billion, while local government councils received N295.855 billion. The benefiting states also received N236.049 billion as derivation revenue.

From the distributable VAT revenue, the Federal Government received N75.659 billion, state governments got N416.123 billion, while local government councils received N264.805 billion.

On revenue performance, FAAC said collections from Petroleum Profit Tax, Hydrocarbon Tax, petroleum royalties, import duty, Common External Tariff levies and excise duty increased significantly during the month.

However, revenue from CIT, CGT, Stamp Duties, VAT, mineral royalties, gas-flaring penalties and fees, and miscellaneous oil revenue declined considerably.

The increase in statutory revenue helped lift total distributable revenue despite the decline in VAT receipts and other revenue sources.