The Federation Account Allocation Committee (FAAC) has distributed N2.428 trillion among the Federal Government, state governments and local government councils, despite declines in collections from Companies Income Tax (CIT), Capital Gains Tax (CGT), Stamp Duties and Value Added Tax (VAT).
The amount represents revenue accrued to the Federation Account and VAT proceeds for September 2026. It is N90 billion higher than the N2.338 trillion shared among the three tiers of government in August.
According to a communiqué issued at the end of FAAC’s meeting in Abuja on Thursday, 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 were allocated N799.872 billion. Local government councils received N560.660 billion, while N236.049 billion was shared among eligible states as 13 per cent derivation revenue from mineral resources.
The communiqué stated that gross revenue for 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.
Gross statutory revenue rose to N3.096 trillion in September from N2.850 trillion in August, representing an increase of N246.384 billion.
However, gross VAT revenue fell to N816.872 billion from N834.843 billion in the preceding month, a decline 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 were allocated N295.855 billion. The benefiting states also received N236.049 billion as derivation revenue.
From the distributable VAT proceeds, 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 recorded significant increases during the month.
However, collections from CIT, CGT, Stamp Duties, VAT, mineral royalties, gas-flaring penalties and fees, as well as miscellaneous oil revenue, declined considerably.
The increase in statutory revenue helped raise the total distributable amount despite lower VAT receipts and declines in other revenue sources.