Politics, Trending

FG, States, LGs Pocket N1.89tn as FAAC Releases February Allocation

Published by Samuel Ayomide on March 14th, 2026.

The Federal Government, the 36 state governments, and the 774 local government councils have shared a total of N1.894 trillion as revenue for February 2026 following the latest meeting of the Federation Account Allocation Committee (FAAC) in Abuja.

According to details contained in a communiqué issued after the meeting, the amount shared among the three tiers of government was drawn from statutory revenue and Value Added Tax collections. The communiqué, signed by the Director of Press and Public Relations at the Office of the Accountant-General of the Federation, Bawa Mokwa, outlined how the funds were distributed during the March FAAC session.

Reports by The Punch indicated that the distributable revenue consisted of N1.274 trillion from statutory earnings and N619.119 billion from VAT proceeds.

Before the final allocation was made, the committee disclosed that total gross revenue for February stood at N2.230 trillion. From this figure, deductions were made to cover operational and statutory obligations.

According to The Guardian Nigeria, a total of N77.302 billion was deducted as the cost of collection, while another N259.078 billion was earmarked for transfers, refunds, and savings, leaving the remaining balance that was eventually shared among the federal, state, and local governments.

A closer look at the revenue streams showed that statutory revenue experienced a noticeable decline during the month under review. The FAAC report revealed that gross statutory income dropped to N1.561 trillion in February, compared with N1.957 trillion recorded in January, representing a decrease of about N395.138 billion, according to The Nation Newspaper.

Similarly, Value Added Tax receipts also recorded a downturn. The report showed that VAT revenue stood at N668.450 billion in February, significantly lower than the N1.083 trillion generated in January, reflecting a decline of N414.710 billion.

From the N1.894 trillion total distributable revenue, the Federal Government received N675.088 billion, while the state governments collectively shared N651.525 billion. The 774 local government councils received N456.467 billion, according to the FAAC communiqué cited by Vanguard.

In addition, N110.949 billion was distributed to oil-producing states as derivation revenue, representing the constitutionally mandated 13 per cent share from mineral resources.

A breakdown of the statutory component showed that the Federal Government received N613.174 billion, while the states received N311.010 billion, and local governments shared N239.776 billion. Oil-producing states also benefited from the derivation allocation from this component.

From the N619.119 billion VAT pool, the Federal Government received N61.912 billion, while the state governments got N340.515 billion, and local governments shared N216.692 billion, according to figures highlighted by Daily Trust.

The FAAC report also provided insights into the performance of key revenue sources. While oil and gas royalties and excise duties recorded noticeable increases, several other revenue streams posted declines during the period.

According to the committee, Petroleum Profit Tax, Hydrocarbon Tax, Companies Income Tax, Capital Gains Tax, Stamp Duties, and VAT collections all recorded significant drops during the month. However, import duties and revenues from the Common External Tariff experienced slight improvements, as reported by The Guardian Nigeria.

The Federation Account Allocation Committee holds monthly meetings to distribute revenues generated into the Federation Account among the federal, state, and local governments in accordance with Nigeria’s revenue-sharing formula.