The Federal Government, state governments and local government councils shared N2.428tn in October 2026, an increase of N90bn from the N2.338tn distributed in September, following a rebound in statutory revenue.
The latest allocation, approved at the October meeting of the Federation Account Allocation Committee (FAAC) in Abuja, represented a 3.85 per cent rise from the previous month’s disbursement.
The recovery was driven by higher receipts from petroleum-related taxes, royalties and import duties, although collections from Value Added Tax (VAT) declined.
The figures were disclosed in a statement issued on Thursday by the Director of Press and Public Relations in the Office of the Accountant-General of the Federation, Bawa Mokwa. The allocation represents revenue generated in September.
The increase follows a sharp drop in FAAC distributions in September, when the three tiers of government shared N2.338tn, down N669bn from the N3.007tn distributed in August.
Despite the latest improvement, October’s allocation remained N579bn, or 19.3 per cent, below the August record. It was also N122bn lower than the N2.550tn shared in July, but exceeded the N2.300tn distributed in June.
Statutory Revenue Rises as VAT Collections Fall
Gross statutory revenue rose to N3.096tn in September from N2.850tn in August, representing an increase of N246.384bn, or about 8.6 per cent.
The growth marked a recovery from the previous month’s sharp contraction, when statutory revenue fell from N4.359tn in July to N2.850tn in August.
VAT collections, however, moved in the opposite direction. Gross VAT revenue declined by N17.972bn to N816.872bn in September, compared with N834.843bn in August, a decrease of approximately 2.2 per cent.
The decline reversed the increase recorded in August, when VAT receipts climbed from N793.968bn in July to N834.843bn.
Overall, gross revenue entering the Federation Account increased by N228bn, or 6.2 per cent, to N3.913tn in September from N3.685tn in August.
However, the rise in gross collections did not produce an equivalent increase in the amount available for distribution because deductions, transfers, refunds and savings also increased during the period.
The cost of collection rose to N131.758bn from N125.142bn, an increase of N6.616bn. Transfers, refunds and savings also climbed by N131bn, from N1.221tn to N1.352tn.
Consequently, the amount shared among the three tiers of government increased by N90bn, despite the larger improvement in gross revenue.
Federal Government Gets N832bn
Of the N2.428tn distributed in October, the Federal Government received N832.242bn, up from N804.897bn in September.
The 36 state governments received N799.872bn, compared with N794.313bn in the previous distribution, while the 774 local government councils received N560.660bn, an increase from N555.142bn.
Oil-producing states recorded a more substantial increase in their derivation allocation, which rose to N236.049bn from N184.388bn. The increase of N51.661bn represents a rise of approximately 28 per cent.
The derivation fund provides oil-producing states with 13 per cent of mineral revenue attributable to them under Nigeria’s revenue-sharing arrangement.
The total distributable amount comprised N1.672tn in statutory revenue and N756.587bn from VAT.
From the statutory revenue component, the Federal Government received N756.583bn, while state governments received N383.749bn. Local government councils were allocated N295.855bn, with N236.049bn going to oil-producing states as derivation revenue.
The VAT component was shared differently, with the Federal Government receiving N75.659bn, state governments getting N416.123bn and local governments receiving N264.805bn.
Revenue Performance Varies Across Sources
The FAAC communiqué showed mixed results among the major revenue streams during September.
Petroleum Profit Tax, Hydrocarbon Tax, petroleum royalties, import duties, Common External Tariff levies and excise duties recorded increases.
In contrast, Companies Income Tax, Capital Gains Tax, stamp duties, VAT, mineral royalties, gas-flaring penalties, gas-flaring fees and miscellaneous oil revenue declined.
The figures indicate that the improvement in the latest FAAC allocation was largely supported by stronger statutory receipts, while weaker VAT collections and higher deductions limited the overall increase in funds available to the federal, state and local governments.
