FG, States, LGs Share N1.894trn February Revenue as FAAC Records Drop in VAT, Statutory Earnings

A total of N1.894 trillion, representing the February 2026 Federation Account revenue, has been shared among the Federal Government, state governments and the 774 local government councils across the country.

The revenue allocation was approved during the March 2026 meeting of the Federation Account Allocation Committee (FAAC) held in Abuja.

According to a communiqué issued at the end of the meeting, the distributable revenue comprised N1.274 trillion from statutory revenue and N619.119 billion from Value Added Tax (VAT).

The committee disclosed that gross revenue of N2.230 trillion accrued to the federation account in February 2026. From this amount, N77.302 billion was deducted as the cost of collection, while N259.078 billion was set aside for transfers, refunds and savings.

A breakdown of the distributable revenue showed that the Federal Government received N675.088 billion, state governments got N651.525 billion, while local government councils received N456.467 billion.

In addition, N110.949 billion, representing 13 per cent derivation revenue, was allocated to oil-producing states.

Further analysis indicated that from the N1.274 trillion statutory revenue, the Federal Government received N613.174 billion, states received N311.010 billion, and local governments got N239.776 billion, while the oil-producing states shared the N110.949 billion derivation fund.

Similarly, from the N619.119 billion VAT revenue, the Federal Government received N61.912 billion, state governments received N340.515 billion, while local government councils received N216.692 billion.

The communiqué also revealed a decline in revenue performance in February, as gross statutory revenue fell to N1.561 trillion, representing a drop of N395.138 billion compared to the N1.957 trillion recorded in January 2026.

Likewise, gross VAT revenue declined to N668.450 billion in February, which was N414.710 billion lower than the N1.083 trillion generated in January.

Despite the overall decline, the committee noted that Oil and Gas Royalty and Excise Duty recorded notable increases during the period.

However, Petroleum Profit Tax (PPT), Hydrocarbon Tax (HT), Companies Income Tax (CIT), Capital Gains Tax (CGT), Stamp Duties (SDT), and Value Added Tax (VAT) witnessed significant reductions.

The report further indicated that Import Duty and the Common External Tariff (CET) posted marginal increases within the month under review.