The three tiers of government have shared a total of N2.428 trillion as Federation Account revenue for September 2026.
The allocation was announced after the October 2026 meeting of the Federation Account Allocation Committee, FAAC, held in Abuja.
A statement issued on Thursday by Bawa Mokwa, Director of Press and Public Relations at the Office of the Accountant-General of the Federation, OAGF, said the N2.428 trillion shared comprises N1.672 trillion from statutory revenue and N756.587 billion from Value Added Tax, VAT.
According to the statement, the Federation Account recorded a gross revenue of N3.913 trillion in September. Out of the gross inflow, N131.758 billion was deducted as cost of collection, while N1.352 trillion was set aside for transfers, refunds and savings.
The gross statutory revenue alone stood at N3.096 trillion, which is N246.384 billion higher than the N2.850 trillion recorded in August 2026, indicating an improvement in oil and non-oil statutory receipts for the month.
However, VAT performance dropped slightly. Gross VAT revenue fell to N816.872 billion in September from N834.843 billion in August, representing a decrease of N17.972 billion.
On how the money was shared, the communique showed that the Federal Government received N832.242 billion, state governments got N799.872 billion, local government councils received N560.660 billion, while N236.049 billion was allocated to oil-producing states as 13 per cent derivation revenue.
A further breakdown of the N1.672 trillion distributable statutory revenue showed that the Federal Government received N756.583 billion, states received N383.749 billion and local governments got N295.855 billion. The derivation allocation of N236.049 billion also came from this component.
From the N756.587 billion distributable VAT revenue, the Federal Government received N113.488 billion? No - according to FAAC sharing formula, it received N75.659 billion, state governments received N416.123 billion and local government councils received N264.805 billion.
The communique also gave insight into revenue performance in the month under review. It noted that Petroleum Profit Tax, Hydrocarbon Tax, royalties from petroleum, import duty, Common External Tariff levies and excise duty recorded significant increases.
On the other hand, receipts from Companies Income Tax, Capital Gains Tax, Stamp Duties, VAT, mineral royalties, gas flaring penalties and fees, and miscellaneous oil revenue recorded declines.
The September allocation is one of the highest so far this year and is expected to provide some fiscal relief to states and local governments as they struggle with salary payments, debt servicing and funding of capital projects amid rising cost of governance.
