The three tiers of government have shared ₦2.428tn in September 2026 Federation Account revenue, with an increase in statutory receipts offset by a decline in Value Added Tax collections.
The Federation Account Allocation Committee (FAAC) approved the distribution at its October meeting in Abuja, according to a statement issued on Thursday by Bawa Mokwa, Director of Press and Public Relations in the Office of the Accountant-General of the Federation.
The total distributable revenue comprised ₦1.672tn from statutory revenue and ₦756.587bn from Value Added Tax.
Under the allocation, the Federal Government received ₦832.242bn, state governments got ₦799.872bn, while local government councils received ₦560.660bn. The benefiting states also shared ₦236.049bn as their 13 per cent derivation revenue from mineral resources.
The committee’s communiqué showed that the Federation generated gross revenue of ₦3.913tn in September. Of this amount, ₦131.758bn was deducted as the cost of collection, while ₦1.352tn went towards transfers, refunds and savings.
Gross statutory revenue rose to ₦3.096tn in September from ₦2.850tn in August, representing an increase of ₦246.384bn.
However, gross VAT revenue declined to ₦816.872bn from ₦834.843bn in August, a reduction of ₦17.972bn.
The breakdown of the ₦1.672tn distributable statutory revenue showed that the Federal Government received ₦756.583bn, while state governments got ₦383.749bn. Local government councils received ₦295.855bn, and the benefiting states shared ₦236.049bn as derivation revenue.
From the ₦756.587bn distributable VAT revenue, the Federal Government received ₦75.659bn, state governments got ₦416.123bn, while local government councils received ₦264.805bn.
The figures show that state and local governments received the larger portions of the distributable VAT revenue, while the Federal Government received a smaller share.
The communiqué attributed the mixed revenue performance to increases in some petroleum-related and other revenue sources, alongside declines in several tax and oil-related receipts.
Petroleum Profit Tax, Hydrocarbon Tax, petroleum royalties, import duty, Common External Tariff levies and excise duty recorded significant increases in September.
In contrast, Companies Income Tax, Capital Gains Tax and Stamp Duties, Value Added Tax, mineral royalties, gas-flared penalties, rental gas-flared fees and miscellaneous oil revenue recorded considerable declines.
The September allocation provides funding for the three tiers of government, although the amount distributable was lower than the gross revenue generated during the month after collection costs, transfers, refunds and savings were accounted for.
Discussion0