FAAC Shares ₦2.4 Trillion as Government Revenue Rises by ₦90 Billion

The Federation Account Allocation Committee (FAAC) has distributed ₦2.428 trillion among the Federal Government, 36 state governments and 774 local government councils following an increase in revenue generated in September 2026.

The allocation was announced after the committee's October meeting in Abuja. According to figures released by the Office of the Accountant-General of the Federation, the amount represents an increase of approximately ₦90 billion from the ₦2.338 trillion distributed in the previous allocation.

Of the total amount, the Federal Government received ₦832.242 billion, while state governments received ₦799.872 billion. Local government councils received ₦560.660 billion, with oil-producing states sharing an additional ₦236.049 billion as derivation revenue.

The distributable revenue comprised ₦1.672 trillion from statutory revenue and ₦756.587 billion from Value Added Tax (VAT).

FAAC reported that total gross revenue available for September stood at ₦3.913 trillion. However, ₦131.758 billion was deducted as the cost of collection, while ₦1.352 trillion went towards transfers, refunds and savings.

Statutory revenue, which includes earnings from petroleum-related taxes, royalties and import duties, increased to ₦3.096 trillion in September from ₦2.850 trillion in August.

VAT collections, however, recorded a decline. Gross VAT revenue fell to ₦816.872 billion from ₦834.843 billion in the preceding month, despite the overall increase in revenue available for distribution.

The latest allocation provides additional funds for the three tiers of government to meet their financial obligations, including spending on infrastructure, healthcare, education and other public services.

However, the increase in revenue does not automatically translate into improved living conditions. The impact on citizens will depend on how effectively the funds are managed and whether they deliver measurable improvements in public services