FAAC: FG, States, LGAs Share N1.89trn in February as VAT Drops by #414bn
The Federation Account Allocation Committee (FAAC) has distributed a total of N1.89 trillion to the federal government, states, and local government councils for February 2026.
The revenue allocation was approved during the March 2026 FAAC meeting held in Abuja on Friday, chaired by Wale Edun, Minister of Finance and Coordinating Minister of the Economy.
As of the time of filing this report, the finance ministry had not responded to TheCable’s inquiry regarding the January allocation.
Breakdown of Allocation
According to a statement issued by the ministry, gross revenue available in February stood at N2.23 trillion before deductions.
From the N1.89 trillion distributable revenue:
- The federal government received N675.08 billion
- State governments shared N651.52 billion
- Local government councils received N456.46 billion
- Oil-producing states received N110.94 billion as 13% derivation revenue from mineral resources.
From the gross revenue:
- N77.30 billion was deducted as the cost of collection
- N259.07 billion was set aside for transfers, interventions, and refunds.
VAT Revenue Declines
FAAC also disclosed that gross revenue from value-added tax (VAT) in February was N668.45 billion, a significant drop from the N1.08 trillion recorded in January. This represents a decline of N414.71 billion.
From the VAT revenue:
- N26.73 billion went to cost of collection
- N22.59 billion was allocated for transfers, interventions, and refunds
The remaining N619.11 billion was distributed among the three tiers of government:
- Federal government — N61.91 billion
- States — N340.51 billion
- Local governments — N216.69 billion
Statutory Revenue Also Falls
The communiqué further revealed that gross statutory revenue for February stood at N1.56 trillion, down from N1.95 trillion in January, reflecting a decline of N395.13 billion.
From the statutory revenue:
- N50.56 billion was deducted as cost of collection
- N236.48 billion was allocated for transfers, interventions, and refunds
The remaining N1.27 trillion was shared as follows:
- Federal government — N613.17 billion
- States — N311.01 billion
- Local governments — N239.77 billion
- Derivation revenue (13% to mineral-producing states) — N110.94 billion
Revenue Performance
FAAC noted that oil and gas royalties and excise duties recorded notable increases during the period.
However, petroleum profits tax (PPT), hydrocarbon tax, companies’ income tax (CIT), capital gains tax, stamp duties, and VAT recorded significant declines.
The committee also reported slight increases in import duty and the common external tariff during the month.