The Federation Account Allocation Committee (FAAC) has shared N2.036 trillion among the federal government, states, and local government councils. The allocation was made during the April 2026 meeting in Abuja.
Breakdown of Revenue
The distributable revenue comprised three key components:
– Statutory revenue: N1.320 trillion
– Value Added Tax (VAT): N515.391 billion
– Augmentation: N200 billion
According to FAAC’s communiqué, the total gross revenue available in March stood at N2.364 trillion. From this amount, N81.084 billion was deducted for collection costs, while transfers, refunds, and savings accounted for N246.872 billion. An additional N200 billion was added as an augmentation.
Statutory and VAT Performance Gross statutory revenue for March was N1.699 trillion, an increase of N137.914 billion compared to February’s N1.561 trillion.
VAT revenue, however, declined slightly. March recorded N664.425 billion, which was N4.025 billion lower than February’s N668.450 billion.
Distribution of Funds
From the N2.036 trillion distributable revenue:
– Federal Government: N789.159 billion
– State Governments: N657.596 billion
– Local Government Councils: N468.826 billion
– Derivation (13% of mineral revenue): N120.759 billion shared with oil-producing states
Statutory Revenue Allocation (N1.320 trillion)
– Federal Government: N632.260 billion
– States: N320.691 billion
– Local Governments: N247.239 billion
– Derivation: N120.759 billion
VAT Revenue Allocation (N515.391 billion)
– Federal Government: N51.539 billion
– States: N283.465 billion
– Local Governments: N180.387 billion
Augmentation (N200 billion)
– Federal Government: N105.360 billion
– States: N53.440 billion
– Local Governments: N41.200 billion
Revenue Trends
FAAC noted significant increases in Companies Income Tax (CIT), Capital Gains Tax (CGT), Stamp Duty Tax (SDT), and Excise Duty during March. In contrast, Petroleum Profit Tax (PPT), Hydrocarbon Tax (HT), Oil and Gas Royalty, Import Duty, and Common External Tariff (CET) recorded declines. VAT also decreased marginally.
Implications
The distribution reflects both growth and challenges in Nigeria’s revenue streams. Higher statutory collections, driven by improved CIT and excise duty, boosted overall revenue. However, declines in oil-related taxes and royalties highlight ongoing vulnerabilities in the petroleum sector.
The federal government remains the largest beneficiary, receiving nearly 39 percent of the total allocation. States and local governments together accounted for about 55 percent, while derivation revenue ensured oil-producing states received their constitutionally mandated share.
FAAC’s April allocation of N2.036 trillion underscores the importance of diversified revenue sources in sustaining Nigeria’s fiscal system. While statutory collections improved, declines in oil-related revenues reveal structural weaknesses. The distribution provides critical funding for all tiers of government, but the figures also emphasize the need for reforms to strengthen non-oil revenue and ensure long-term fiscal stability.
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