FAAC Shares ₦2.428trn Among FG, States, LGs For September

Allocation Rises By ₦90bn Despite Decline In VAT And Some Tax Revenues

By Henryrich Ojo | Newsworld

The Federal Government, state governments and local government councils have shared ₦2.428 trillion from the Federation Account and Value Added Tax (VAT) revenue for September 2026. The allocation, announced after the Federation Account Allocation Committee (FAAC) meeting in Abuja, represents an increase of about ₦90 billion compared with the ₦2.338 trillion shared in August. According to the communiqué, the September distribution comprised ₦1.672 trillion from statutory revenue and ₦756.587 billion from VAT.

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Under the distribution, the Federal Government received ₦832.242 billion, while state governments received ₦799.872 billion and local government councils got ₦560.660 billion. An additional ₦236.049 billion was shared among states entitled to the 13 per cent derivation fund from mineral resources.

The breakdown showed that the Federal Government received ₦756.583 billion from statutory revenue and ₦75.659 billion from VAT. State governments received ₦383.749 billion from statutory revenue and ₦416.123 billion from VAT, while local governments got ₦295.855 billion from statutory revenue and ₦264.805 billion from VAT.

FAAC reported that gross revenue generated in September stood at ₦3.913 trillion, with ₦131.758 billion deducted as the cost of collection and ₦1.352 trillion allocated to transfers, refunds and savings. Gross statutory revenue increased to ₦3.096 trillion from ₦2.850 trillion in August, an increase of ₦246.384 billion. However, gross VAT revenue fell to ₦816.872 billion from ₦834.843 billion.

The committee said revenue from petroleum profit tax, hydrocarbon tax, petroleum royalties, import duty and excise duty improved, while collections from company income tax, capital gains tax, stamp duties and several other sources declined. The rise in statutory revenue helped lift the overall allocation despite the drop in VAT receipts.