FAAC: FG, states, LGAs shared N1.89trn in February | VAT dropped by N414bn

The federation account allocation committee (FAAC) says it distributed the sum of N1.89 trillion in February to the federal government, states, and local government councils.

The revenue was distributed 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 filling this report, the finance ministry has not answered TheCable’s enquiry on January allocation.

According to a statement by the ministry, the committee said the total gross revenue available in February stood at N2.23 trillion before deductions were made.

From the N1.89 trillion total distributable revenue, FAAC said the federal government received N675.08 billion, states shared N651.52 billion, local governments received N456.46 billion, while N110.94 billion was given to oil-producing state as 13 percent derivation revenue from mineral resources.

According to the communiqué, from the gross revenue, N77.30 billion was deducted as cost of collection, while N259.07 billion was set aside for transfers, refunds and refunds.

The committee also said gross revenue from value-added tax (VAT) in February stood at N668.45 billion – lower than the N1.08 trillion recorded in January, indicating a decline of N414.71 billion.

Out of the VAT revenue, N26.73 billion went to the cost of collection and N22.59 billion was allocated for transfers, intervention and refunds, leaving the three-tiers of government to share the remaining N619.11 billion, with the federal government receiving N61.91 billion, the states getting N340.51 Billion and N216.69 billion allocated to the local governments.

The communiqué added that the gross statutory revenue for February was N1.56 trillion, falling below the N1.95 trillion recorded in January — representing a N395.13 billion decline.

FAAC said, from the gross statutory revenue last month, N50.56 billion was deducted for the cost of collection and N236.48 billion was allocated for transfers, intervention and refunds.

From the remaining balance of N1.27 trillion, N613.17 billion was distributed to the federal government, states received N311.01 billion, and N239.77 billion was allocated to the local governments, with N110.94 billion going to derivation revenue (13 percent mineral producing states).

Also, the committee said oil and gas royalty and excise duty recorded notable increases during the period.

However, revenues from petroleum profit tax, hydrocarbon tax, companies’ income tax, capital gains tax, stamp duties and VAT recorded significant declines, according to the group.

The committee also said import duty and the common external tariff recorded slight increases during the month.