Revenue declined, as FAAC distributed N1.89tn to FG, states and LGUs for February

The Federation Accounts Allocation Committee (FAAC) has distributed a total of N1,894tn as revenue to the Federal, state and local governments in the country for the month of February 2026.

The February figures were contained in a communiqué issued at the end of the March 2026 FAAC meeting held in Abuja on Friday.

A communiqué signed by FAAC Director of Press and Public Relations, Bawa Mokwa, indicated that the distributable income of N1.894tn was comprised of N1.274tn from statutory revenue and N619.119 billion from Value Added Tax.

It said total gross revenue available in February 2026 stood at N2,230tn before deductions were made.

From this amount, N77.302 billion was deducted as collection costs, while N259.078 billion was set aside for transfers, refunds and savings, leaving a balance that was ultimately divided among the three tiers of government.

The communiqué stated that the statutory gross income in February 2026 was N1.561tn, showing a decrease compared to the N1.957tn recorded in January 2026 — a decrease of N395.138 billion.

The report also showed that gross VAT revenue reached N668.450 billion in February, lower than the N1.083tn recorded in January, representing a decline of N414.710 billion.

Of the total distributable revenue of N1.894tn, the Federal Government received N675.088 billion, 36 state governments received N651.525 billion, and 774 local government councils received N456.467 billion.

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Additionally, N110.949bn, representing 13 per cent of derivation revenues from mineral resources, was distributed to oil-producing countries.

A breakdown of statutory revenue of N1.274tn shows that the Federal Government received N613.174 billion, state governments N311.010 billion and local government councils N239.776 billion.

Oil producing states also received N110.949 billion as derivative revenues from this component.

Of the N619.119bn VAT revenue, the Federal Government received N61.912bn, while state governments received N340.515bn, and local government councils shared N216.692bn.

The FAAC communique also provides insight into the performance of key revenue sources during the reporting month.

According to the report, oil and gas royalties and customs duties recorded significant increases during the period. However, revenues from Petroleum Profit Tax, Hydrocarbon Tax, Corporate Income Tax, Capital Gains Tax, Stamp Duty and VAT recorded significant declines.

The Committee also noted that import duties and General External Tariffs recorded slight increases during the month.

The FAAC meets monthly to distribute the revenue generated into the Federation Account among the Federal Government, state governments and local government councils in line with Nigeria’s revenue sharing formula.