Fidelia Soriwei, Abuja
The Federal Government, 36 state governments and 774 local government councils shared ₦2.428tn in October 2026, as improved statutory revenue and petroleum-related receipts boosted allocations from the Federation Account.
The distribution represented an increase of approximately ₦90bn, or 3.85 per cent, from the ₦2.338tn shared in September. The allocation covered revenue generated in September and was approved at the October meeting of the Federation Account Allocation Committee (FAAC) in Abuja.
The Director of Press and Public Relations in the Office of the Accountant-General of the Federation, Bawa Mokwa, disclosed the figures in a statement issued on Thursday.
“A total sum of N2.428tn, being September 2026 Federation Account Revenue, has been shared to the Federal Government, States and the Local Government Councils,” the statement read.
The latest allocation followed a recovery in statutory revenue after the sharp decline recorded in September, when FAAC distributed ₦2.338tn, down from the record ₦3.007tn shared in August. Despite the improvement, the October distribution remained ₦579bn below the August peak.
According to the FAAC communiqué, gross statutory revenue rose by ₦246.384bn to ₦3.096tn in September, from ₦2.850tn in August. Total gross Federation Account revenue also increased by ₦228bn, or 6.2 per cent, to ₦3.913tn from ₦3.685tn.
However, gross Value Added Tax (VAT) collections declined by ₦17.972bn, or 2.2 per cent, to ₦816.872bn from ₦834.843bn in August.
The increase in gross revenue translated into a more modest rise in distributable funds because collection costs, transfers, refunds and savings increased. Deductions for the cost of collection rose from ₦125.142bn to ₦131.758bn, while transfers, refunds and savings increased by ₦131bn to ₦1.352tn.
Of the ₦2.428tn distributed, the Federal Government received ₦832.242bn, compared with ₦804.897bn in September. State governments received ₦799.872bn, up from ₦794.313bn, while the 774 local government councils received ₦560.660bn, compared with ₦555.142bn previously.
Oil-producing states recorded a notable increase in derivation revenue, which rose by ₦51.661bn, or 28 per cent, to ₦236.049bn from ₦184.388bn. The allocation represents the 13 per cent derivation share of mineral revenue due to eligible states under Nigeria’s revenue-sharing framework.
The distributable revenue comprised ₦1.672tn from statutory revenue and ₦756.587bn from VAT. The statutory component increased from ₦1.565tn at the previous meeting, while distributable VAT fell from ₦773.233bn.
From the statutory revenue, the Federal Government received ₦756.583bn, states received ₦383.749bn, and local governments received ₦295.855bn, alongside ₦236.049bn allocated to oil-producing states as derivation revenue.
For VAT, the Federal Government received ₦75.659bn, state governments received ₦416.123bn, and local governments received ₦264.805bn.
The communiqué showed mixed performances across revenue sources. Petroleum Profit Tax, Hydrocarbon Tax, petroleum royalties, import duties, Common External Tariff levies and excise duty recorded increases, while Companies Income Tax, Capital Gains Tax, stamp duties, VAT, mineral royalties and several other oil-related revenue streams declined.
