The Federation Account Allocation Committee (FAAC) has shared a total of ₦2.428 trillion among the three tiers of government—the Federal Government, 36 states, and 774 local government councils—for September 2026.

The allocation was announced in Abuja following the committee's meeting, representing a ₦90 billion increase from the ₦2.338 trillion disbursed for August.

Breakdown of Disbursements

Out of the total distributable revenue of ₦2.428 trillion, the allocation was distributed as follows:

  • Federal Government: Received ₦832.242 billion.

  • State Governments: Received ₦799.872 billion.

  • Local Government Councils: Received ₦560.660 billion.

  • 13% Derivation Fund: ₦236.049 billion was shared among mineral-producing states.

Revenue Sources & Breakdown

The overall distributable amount was pulled from two main revenue channels:

  1. Statutory Revenue: Totaled ₦1.672 trillion.

    • Federal Government: ₦756.583 billion

    • State Governments: ₦383.749 billion

    • Local Governments: ₦295.855 billion

    • Derivation (13%): ₦236.049 billion

  2. Value Added Tax (VAT): Totaled ₦756.587 billion.

    • Federal Government: ₦75.659 billion

    • State Governments: ₦416.123 billion

    • Local Governments: ₦264.805 billion

Revenue Highlights & Fluctuations

Total gross revenue generated by the Federation for September stood at ₦3.913 trillion. From this pool, ₦131.758 billion was deducted as cost of collection, while ₦1.352 trillion went toward transfers, refunds, and savings.

  • Surge in Statutory Revenue: Gross statutory revenue surged by ₦246.384 billion, rising from ₦2.850 trillion in August to ₦3.096 trillion in September. The spike was driven by notable increases in Petroleum Profit Tax (PPT), Hydrocarbon Tax, petroleum royalties, import duties, excise duties, and Common External Tariff (CET) levies.

  • Decline in VAT & Tax Categories: Gross VAT collections dropped by ₦17.972 billion, moving from ₦834.843 billion in August down to ₦816.872 billion in September. Decreases were also recorded in Companies Income Tax (CIT), Capital Gains Tax (CGT), Stamp Duties, gas-flaring penalties, and miscellaneous oil revenue.

Despite the drop in VAT and corporate tax collections, the strong rebound in statutory oil and trade receipts pushed the net distributable funds higher for the month.

What are your thoughts on state and local governments getting larger shares of consumption tax (VAT) distributions? Drop your comments below!