The Federal Government, state governments and local government councils have shared N2.428tn as revenue generated into the Federation Account in September 2026, despite a decline in earnings from Value Added Tax.
The allocation was announced in a statement issued on Thursday by the Director of Press and Public Relations at the Office of the Accountant-General of the Federation, Bawa Mokwa, following the October 2026 meeting of the Federation Account Allocation Committee held in Abuja.
According to the statement, the total distributable revenue comprised N1.672tn from statutory revenue and N756.587bn from Value Added Tax.
A communiqué issued after the meeting showed that the three tiers of government shared the funds after the Federation Account recorded a gross revenue of N3.913tn in September.
However, deductions amounting to N131.758bn were made for the cost of collection, while N1.352tn was deducted for transfers, refunds and savings.
A breakdown of the allocation showed that the Federal Government received N832.242bn, while the 36 state governments shared N799.872bn.
The local government councils received N560.660bn, while oil-producing states received an additional N236.049bn as 13 per cent derivation revenue from mineral resources.
The derivation allocation is meant for states entitled to a share of revenue generated from natural resources within their territories.
A further breakdown of the N1.672tn distributable statutory revenue showed that the Federal Government received N756.583bn, while the state governments received N383.749bn.
The local government councils got N295.855bn from the statutory revenue pool, while N236.049bn was allocated to benefiting states as derivation revenue.
From the N756.587bn distributable VAT revenue, the Federal Government received N75.659bn, state governments received N416.123bn, and local government councils got N264.805bn.
The September revenue performance presented a mixed picture, with statutory revenue recording an increase while VAT receipts declined compared with the previous month.
According to the communiqué, gross statutory revenue stood at N3.096tn in September, representing an increase of N246.384bn over the N2.850tn recorded in August.
In contrast, gross VAT revenue fell to N816.872bn in September from N834.843bn in August, representing a decline of N17.972bn.
The committee also reported increases in revenue from Petroleum Profit Tax, Hydrocarbon Tax, petroleum royalties, import duty, Common External Tariff levies and excise duty during the period under review.
However, receipts from Companies Income Tax, Capital Gains Tax, Stamp Duties, VAT, mineral royalties, gas-flaring penalties, gas-flaring fees and miscellaneous oil revenue recorded declines.
The latest allocation comes amid continuing fiscal pressures on the three tiers of government, which rely heavily on monthly Federation Account disbursements to finance public services, infrastructure projects and other statutory obligations.
The FAAC meets monthly to determine the revenue available for distribution among the Federal Government, state governments and local government councils.
.....
