FAAC Allocates N1.894 Trillion to Federal, State and Local Governments for February

The Federation Account Allocation Committee (FAAC) convened on Friday to allocate a total of N1.894 trillion among the three levels of government for February 2026, out of a gross revenue of N2.230 trillion.

The allocation was disclosed during a monthly meeting chaired by the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun.

The distributable revenue of N1.894 trillion includes N1.274 trillion from Gross Statutory Revenue and N619.119 billion from Value Added Tax (VAT). The federal government received N675.086 billion, states received N651.525 billion, while local councils acquired N456.467 billion.

Additionally, oil-producing states were allocated N110.949 billion as a 13% derivation from mineral revenue.

According to the communiqué released following the meeting, N77.302 billion was set aside for the cost of collection, and N259.078 billion was allocated for Transfers, Interventions, and Refunds.

In February, the total Gross Revenue from VAT amounted to N668.450 billion, representing a notable decrease from N1.083 trillion in the previous month, leading to a loss of N414.710 billion.

No reasons were provided for this drastic reduction in VAT collections.

From the allocated amount, N26.738 billion went toward the cost of collection, with an additional N22.593 billion assigned for Transfers, Interventions, and Refunds.

The remaining N619.119 billion was distributed among the three levels of government, where the federal government received N61.912 billion, states got N340.515 billion, while local government councils obtained N216.692 billion.

It was noted that the Gross Statutory Revenue recorded in February was N1.561 trillion, which fell short of the N1.957 trillion received in the prior month by N395.138 billion.

Out of this amount, N50.564 billion was earmarked for the cost of collection, while N236.485 billion was designated for Transfers, Interventions, and Refunds.

The balance of N1.274 trillion was consequently divided among the three tiers of government: federal entities received N613.174 billion, states garnered N311.010 billion, and local councils received N239.776 billion. The sum of N110.949 billion was allocated to mineral-producing states as the 13% derivation revenue.

During February, there was a significant increase in Oil and Gas Royalty as well as Excise Duty. Conversely, other revenue streams such as Petroleum Profit Tax (PPT), Hydrocarbon Tax (HT), Companies Income Tax (CIT)/Capital Gains Tax (CGT), Stamp Duty Tax (SDT), and VAT saw substantial declines, while Import Duty and CET Levies saw minor increases.