Nigeria’s three tiers of government shared a total of N1.894 trillion as federation allocation for February 2026, according to the Federation Account Allocation Committee (FAAC).
The distribution was made from a gross revenue of N2.230 trillion generated during the month, the Federal Ministry of Finance said in a statement on Friday.
Under the allocation formula, the Federal Government received N675.086 billion, while the 36 state governments shared N651.525 billion. The 774 local government councils received N456.467 billion.
Oil-producing states also received an additional N110.949 billion as derivation revenue, representing the constitutionally mandated 13 percent share of mineral proceeds.
Deductions and Transfers
Before the distribution, the ministry said N77.302 billion was paid to revenue-generating agencies as the cost of collection. Another N259.078 billion was allocated for transfers, interventions and refunds.
These deductions were made from the total revenue pool before the remaining funds were shared among the three tiers of government.
Decline in VAT Revenue
The statement revealed that Value Added Tax (VAT) collections dropped significantly during the month.
Gross VAT revenue for February stood at N668.450 billion, compared with N1.083 trillion distributed in January, reflecting a decline of N414.710 billion.
From the VAT proceeds, N26.738 billion was deducted as cost of collection, while N22.593 billion was set aside for transfers, interventions and refunds.
The remaining N619.119 billion was shared as follows:
- Federal Government: N61.912 billion
- States: N340.515 billion
- Local governments: N216.692 billion
Statutory Revenue Also Drops
The report also showed that gross statutory revenue for February fell to N1.561 trillion, down from N1.957 trillion recorded in January, representing a decline of N395.138 billion.
From the statutory revenue, N50.564 billion was deducted as cost of collection and N236.485 billion allocated for transfers, interventions and refunds.
The balance of N1.274 trillion was then shared among the tiers of government:
- Federal Government: N613.174 billion
- States: N311.010 billion
- Local governments: N239.776 billion
- Derivation revenue to oil-producing states: N110.949 billion
Mixed Revenue Performance
According to the ministry, some revenue streams recorded improvements during the period, particularly oil and gas royalties and excise duties.
However, several key tax components experienced declines. These included Petroleum Profit Tax (PPT), Hydrocarbon Tax (HT), Companies Income Tax (CIT), Capital Gains Tax (CGT), Stamp Duties (SDT) and Value Added Tax (VAT).
The FAAC monthly allocation remains a crucial source of funding for Nigeria’s federal, state and local governments, financing public services, infrastructure projects and government operations across the country.
