Key Takeaways
- The Federation Account Allocation Committee (FAAC) shared ₦2.428 trillion among the Federal Government, state governments and local government councils for September 2026.
- The total allocation was approximately ₦90 billion higher than the ₦2.338 trillion shared in August.
- The Federal Government received ₦832.242 billion, while states received ₦799.872 billion and local governments got ₦560.660 billion.
- Statutory revenue increased, but gross Value Added Tax (VAT) revenue declined during the month.
- The allocation included ₦236.049 billion in 13 per cent derivation revenue for eligible states.
FAAC Shares ₦2.428 Trillion Among Three Tiers of Government
The Federal Government, state governments and local government councils shared ₦2.428 trillion in Federation Account and Value Added Tax revenue for September 2026, following the latest meeting of the Federation Account Allocation Committee (FAAC).
The amount represented an increase of approximately ₦90 billion compared with the ₦2.338 trillion distributed in August, according to the figures contained in the committee’s communiqué.
The September allocation comprised ₦1.672 trillion from statutory revenue and ₦756.587 billion from VAT revenue.
The distribution provides funding to the three tiers of government, although the amount each receives depends on the applicable allocation arrangements and revenue category.
How Much Did the Federal Government, States and LGs Receive?
The Federal Government received the largest allocation among the three tiers, with ₦832.242 billion. State governments received ₦799.872 billion, while local government councils were allocated ₦560.660 billion.
The committee also distributed ₦236.049 billion to states eligible for the 13 per cent derivation payment from mineral resources.
The allocation figures were reported as follows:
| Recipient | September 2026 allocation |
|---|---|
| Federal Government | ₦832.242 billion |
| State governments | ₦799.872 billion |
| Local government councils | ₦560.660 billion |
| 13% derivation to eligible states | ₦236.049 billion |
The derivation payment is an additional allocation category identified in the communiqué and should be distinguished from the amounts listed for the three tiers of government.
Breakdown of Statutory Revenue and VAT Allocations
The communiqué provided separate figures for statutory revenue and VAT, showing how the two revenue sources contributed to the September distribution.
Statutory Revenue Distribution
From statutory revenue, the Federal Government received ₦756.583 billion, while state governments received ₦383.749 billion.
Local government councils were allocated ₦295.855 billion. The committee also reported ₦236.049 billion for eligible states under the 13 per cent derivation arrangement.
VAT Revenue Distribution
The VAT allocation was distributed differently, with state governments receiving the largest share of the three tiers’ listed VAT amounts.
| Recipient | VAT allocation |
|---|---|
| Federal Government | ₦75.659 billion |
| State governments | ₦416.123 billion |
| Local government councils | ₦264.805 billion |
The figures show the separate contributions of statutory revenue and VAT to government funding. They should not be confused with the gross revenue collected before deductions, transfers and other adjustments.
Gross Government Revenue Rose in September
FAAC reported that total gross revenue generated in September stood at ₦3.913 trillion.
Of this amount, ₦131.758 billion was deducted as the cost of collecting the revenue, while ₦1.352 trillion was allocated to transfers, refunds and savings.
Gross statutory revenue increased to ₦3.096 trillion in September from ₦2.850 trillion in August. The rise amounted to ₦246.384 billion.
The increase in statutory revenue helped lift the amount available for distribution, even though collections from some other revenue sources weakened.
VAT Revenue Declined Despite Higher Statutory Collections
While statutory revenue improved, gross VAT revenue moved in the opposite direction.
VAT collections fell to ₦816.872 billion in September from ₦834.843 billion in August, representing a decline of ₦17.972 billion.
FAAC reported increases in revenue from Petroleum Profit Tax, Hydrocarbon Tax, petroleum royalties, import duty, Common External Tariff levies and excise duty.
However, collections from Company Income Tax, Capital Gains Tax, Stamp Duties, VAT, mineral royalties, gas-flaring penalties and fees, as well as other oil revenue, declined during the period.
The contrasting trends indicate that the monthly increase in the amount shared was not driven by stronger performance across every revenue category. The rise in statutory revenue helped offset the weakness recorded in VAT and several other collections.
What the September FAAC Allocation Means
The September figures highlight the importance of statutory revenue to the overall amount distributed to Nigeria’s three tiers of government.
Although the total allocation increased compared with August, the fall in gross VAT collections shows that different revenue sources did not perform uniformly.
The allocations provide funding for the Federal Government, state governments and local councils. However, the figures alone do not establish how much individual governments will spend on public services, infrastructure or other programmes.
The actual effect of the allocations will depend on how each tier of government manages its funds and meets its spending responsibilities.
Frequently Asked Questions
1. How much did FAAC share for September 2026?
FAAC shared approximately ₦2.428 trillion among the Federal Government, state governments and local government councils for September 2026.
2. How much did the Federal Government receive?
The Federal Government received ₦832.242 billion from the total September allocation.
3. How much did state governments receive?
State governments received ₦799.872 billion, according to the allocation figures in the supplied report.
4. How much did local government councils receive?
Local government councils received ₦560.660 billion.
5. Why was the September allocation higher than August’s?
The total amount shared rose by approximately ₦90 billion compared with August. Gross statutory revenue increased by ₦246.384 billion, helping to offset declines in VAT and some other revenue sources.
6. Did VAT revenue increase in September?
No. Gross VAT revenue declined to ₦816.872 billion in September from ₦834.843 billion in August, a decrease of ₦17.972 billion.
7. What is the 13 per cent derivation allocation?
It is the derivation payment reported for eligible states in connection with mineral resources. The September communiqué figures listed the amount at ₦236.049 billion.
Conclusion
Nigeria’s September 2026 FAAC distribution reached ₦2.428 trillion, approximately ₦90 billion above the August figure. The increase came alongside stronger gross statutory revenue, while VAT and several other revenue sources recorded declines.
The figures provide a snapshot of the revenue available for distribution across the three tiers of government. The next important consideration is how the respective governments manage their allocations and translate public funds into services and development outcomes.
What is your view of the September FAAC allocation? Share your thoughts in the comments section.
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