The Federal Government, state governments and local government councils have received a total of N2.428 trillion as their share of revenue for September 2026, following the latest allocation by the Federation Account Allocation Committee (FAAC).
The amount represents an increase of N90 billion compared with the N2.338 trillion distributed among the three tiers of government in August.
According to a communiqué issued after the committee’s meeting in Abuja, the allocation comprised N1.672 trillion from statutory revenue and N756.587 billion from Value Added Tax (VAT).
The committee reported that total gross revenue generated in September stood at N3.913 trillion. Of this amount, N131.758 billion was deducted as the cost of collection, while N1.352 trillion went towards transfers, refunds and savings.
Figures in the communiqué showed that gross statutory revenue rose to N3.096 trillion in September from N2.850 trillion in August, representing an increase of N246.384 billion.
However, revenue from VAT declined during the period, with gross collections falling to N816.872 billion from N834.843 billion in August, a decrease of N17.972 billion.
Breakdown of September Allocation
Under the latest distribution, the Federal Government received N832.242 billion, while the 36 state governments shared N799.872 billion.
Local government councils received N560.660 billion, while N236.049 billion was allocated to eligible states as the 13 per cent derivation revenue from mineral resources.
A breakdown of the N1.672 trillion statutory revenue showed that the Federal Government received N756.583 billion, while state governments got N383.749 billion.
Local government councils received N295.855 billion from the statutory component, with the benefiting states sharing N236.049 billion as derivation revenue.
From the N756.587 billion generated through VAT, the Federal Government received N75.659 billion, while state governments were allocated N416.123 billion.
Local government councils received N264.805 billion from the VAT revenue.
Oil Revenue Improves as Some Non-Oil Receipts Decline
On revenue performance, FAAC reported increases in receipts from Petroleum Profit Tax, Hydrocarbon Tax, petroleum royalties, import duty, Common External Tariff levies and excise duty.
The committee, however, recorded declines in collections from Companies Income Tax, Capital Gains Tax, Stamp Duties and VAT.
Revenue from mineral royalties, gas-flaring penalties and fees, as well as miscellaneous oil revenue, also fell during the period.
The September allocation provides funds for the three tiers of government to meet their financial obligations, including the payment of salaries, provision of public services and implementation of development projects.
The increase in the total distributable amount compared with August came alongside improved gross statutory revenue, although the decline in VAT collections reflected a different trend in revenue performance during the month.
