FAAC allocation rises to N2.428tn as federal, state governments receive more revenue
The Federal Government, 36 states and 774 local government councils shared N2.428tn from the Federation Account in October 2026, an increase of N90bn from the N2.338tn distributed in September.
The 3.85% increase followed improved statutory revenue collections, driven by higher receipts from petroleum-related taxes, royalties and import duties, despite a decline in Value Added Tax (VAT) revenue.
The allocation, drawn from revenue generated in September, was approved at the October meeting of the Federation Account Allocation Committee (FAAC) in Abuja.
The Director of Press and Public Relations in the Office of the Accountant-General of the Federation, Bawa Mokwa, disclosed the figures in a statement issued on Thursday.
“A total sum of N2.428tn, being September 2026 Federation Account Revenue, has been shared to the Federal Government, States and the Local Government Councils,” the statement said.
The latest distribution represents a recovery from September, when allocations declined by N669bn, or 22.2%, from the record N3.007tn shared in August.
However, the October allocation remained N579bn below the August peak, reflecting continued fluctuations in government revenue.
According to the FAAC communiqué, gross statutory revenue rose to N3.096tn in September from N2.850tn in August, representing an increase of N246.384bn.
“According to the communiqué, gross statutory revenue of N3.096tn was received for the month of September 2026. This was higher than the sum of N2.850tn received in the preceding month by N246.384bn,” the statement added.
However, gross VAT revenue declined by N17.972bn to N816.872bn from N834.843bn recorded in August.
Total gross Federation Account revenue consequently increased from N3.685tn to N3.913tn, although higher deductions and transfers limited the amount available for distribution.
The cost of revenue collection increased to N131.758bn from N125.142bn, while transfers, refunds and savings rose to N1.352tn from N1.221tn.
The N2.428tn distributable revenue comprised N1.672tn in statutory revenue and N756.587bn from VAT.
A breakdown showed that the Federal Government received N832.242bn, compared with N804.897bn in September, representing an increase of N27.345bn.
The 36 state governments received N799.872bn, up from N794.313bn in the preceding month.
The figures indicate a modest recovery in revenue available to the three tiers of government, although allocations remain below the record levels recorded in August.