The Federal Government, 36 state governments and 774 local government councils have shared ₦2.428 trillion from the Federation Account for September 2026, an increase of about ₦90 billion from the ₦2.338 trillion distributed for August.
The allocation was approved at the October 2026 meeting of the Federation Account Allocation Committee (FAAC) in Abuja, according to a report published by The Guardian today, October 15, 2026.
The distributable revenue comprised ₦1.672 trillion from statutory revenue and ₦756.587 billion from Value Added Tax (VAT), reflecting stronger statutory revenue collections despite a decline in VAT receipts.
The Federal Government received ₦832.242 billion, while the 36 state governments shared ₦799.872 billion. Local government councils received ₦560.660 billion, while oil-producing states received ₦236.049 billion as their 13% derivation revenue.
The Federal Government’s allocation was the largest among the three tiers of government, while the states and local councils received substantial funds to support their respective budgets and public services.
According to the FAAC figures reported by The Guardian, gross revenue available for distribution stood at ₦3.913 trillion before deductions. The government deducted ₦131.758 billion as the cost of collection, while transfers, refunds and savings accounted for ₦1.352 trillion.
Gross statutory revenue increased to ₦3.096 trillion in September, up by ₦246.384 billion from ₦2.850 trillion recorded in August.
However, gross VAT revenue declined to ₦816.872 billion from ₦834.843 billion in August, representing a decrease of ₦17.972 billion.
The performance highlights the differing trends in the Federation Account’s major revenue sources, with statutory receipts improving while VAT collections weakened.
From the ₦1.672 trillion distributable statutory revenue, the Federal Government received ₦756.583 billion, state governments received ₦383.749 billion, and local government councils received ₦295.855 billion. Oil-producing states received an additional ₦236.049 billion as derivation revenue.
The VAT component was shared as follows: ₦75.659 billion to the Federal Government, ₦416.123 billion to the states and ₦264.805 billion to local government councils.
Revenue from Petroleum Profit Tax, Hydrocarbon Tax, petroleum royalties, import duty, Common External Tariff levies and excise duty recorded increases during the period.
In contrast, collections from Companies Income Tax, Capital Gains Tax, Stamp Duties, VAT, mineral royalties and gas-flaring penalties declined.
The September allocation follows the distribution of ₦2.338 trillion for August, which was announced after FAAC’s September meeting. The Federal Ministry of Information and National Orientation reported on September 17, 2026, that the August allocation followed a reduction in statutory revenue, although VAT collections had increased during that period.
The latest increase provides additional funds to the three tiers of government, but the amount available to each government will depend on its allocation and spending priorities.
For states and local councils, the distribution adds to the resources available for infrastructure, healthcare, education, salaries and other public services. However, the actual benefit to residents will depend on how the funds are managed and deployed.
