FAAC Allocates N2.43trn to FG, States, LGAs for September
The Federation Account Allocation Committee (FAAC) has shared N2.428 trillion among the Federal Government, state governments, local government councils and oil-producing states as revenue allocation for September 2026.
The allocation was announced in a communiqué issued after the committee’s October meeting, chaired by the Accountant-General of the Federation, Shamsudeen B. Ogunjimi.
The amount distributed came from a gross revenue of N3.913 trillion, according to the Federal Ministry of Finance.
A breakdown of the allocation showed that the Federal Government received N832.242 billion, state governments got N799.872 billion, while local government councils received N560.660 billion.
Oil-producing states were allocated N236.049 billion as their 13 per cent derivation revenue.
The committee also set aside N131.758 billion for the cost of collection and N1.353 trillion for transfers, refunds and savings.
VAT Allocation Records Decline
The communiqué revealed that VAT revenue available for distribution in September 2026 amounted to N816.872 billion, down from N834.843 billion recorded in the preceding month.
The decline represents N17.972 billion.
From the VAT revenue, N23.576 billion was deducted for the cost of collection, while N36.709 billion was allocated for transfers, refunds and savings.
The balance of N756.587 billion was shared among the three tiers of government.
The Federal Government received N75.659 billion, state governments got N416.123 billion, and local government councils were allocated N264.805 billion.
Statutory Revenue Rises by N246.384bn
FAAC also reported an increase in gross statutory revenue, which rose to N3.097 trillion in September from N2.850 trillion in the preceding month.
The increase amounted to N246.384 billion.
Of the statutory revenue, N106.182 billion was allocated for the cost of collection, while N1.316 trillion was set aside for transfers, refunds and savings.
The remaining N1.672 trillion was distributed among the Federal Government, state governments, local government councils and oil-producing states.
The Federal Government received N756.583 billion, state governments got N383.749 billion, while local government councils received N295.855 billion. Oil-producing states were allocated N236.049 billion as derivation revenue.
Oil-Related Taxes Record Growth
According to the communiqué, Petroleum Profit Tax, Hydrocarbon Tax, petroleum royalties, import duty, Common External Tariff levies and excise duty recorded significant increases during the period.
In contrast, Companies Income Tax, Stamp Duty Tax, VAT, mineral royalties, gas-flaring penalties, rental income, gas-flaring fees and miscellaneous oil revenue recorded decreases.
The committee put the total distributable revenue for September at N2.428823 trillion, comprising N1.672238 trillion in statutory revenue and N756.587 billion from VAT.
