FAAC: FG, States, Local Councils Share N2.428trn

By Adedapo Adesanya

The Federation Account Allocation Committee (FAAC), at its October 2025 meeting, chaired by the Accountant General of the Federation (AGF), Mr Shamsudeen Ogunjimi, shared the sum of N2.428 trillion to the three tiers of government as federation allocation from the September 2026 earnings worth N3.913 trillion.

From the stated amount, inclusive of Gross Statutory Revenue and Value Added Tax (VAT), the federal government received N832.242 billion, the states received N799.872 billion, the Local Government Councils got N560.660 billion, while the Oil Producing States received N236.049 billion as Derivation (13 per cent of Mineral Revenue).

The sum of N131.758 billion was given for the cost of collection, while N1.353 trillion was allocated for transfers, refunds and savings.

According to a statement by Mr Francis Kusa, the communique issued by FAAC at the end of the meeting indicated that the gross revenue available from VAT for September 2026 was N816.872 billion, as against N834.843 billion distributed in the preceding month, resulting in a decrease of N17.972 billion.

“From the stated amount, the sum of N23.576 billion was allocated for the cost of collection, and the sum of N36.709 billion was given for Transfers, Refunds and Savings. The remaining sum of N756.587 billion was distributed to the three tiers of government, of which the Federal Government got N75.659 billion, the states received N416.123 billion, and Local Government Councils got N264.805 billion.”

“The Gross Statutory Revenue of N3,096.636 trillion received for the month was higher than the sum of N2.850 trillion received in the previous month by N246.384 billion.”

“From the stated amount, the sum of N106.182 billion was allocated for the cost of collection and a total sum of N1,316.218 trillion for Transfers, Refunds and Savings.”

The statement noted that the remaining balance of N1.672 trillion was distributed as follows: the federal government got N756.583 billion, states received N383.749 billion, N295.855 billion was allocated to Local Government Councils, and N236.049 billion was given to oil-producing states as derivation revenue (13 per cent of mineral revenue).

“Petroleum Profit Tax (PPT), Hydrocarbon Tax (HT), Petroleum Royalties, Import Duty, CET Levies and Excise Duty increased significantly, while Companies Income Tax (CIT) and SDT, Value Added Tax (VAT), Mineral Royalties, Gas Flared Penalty, Rental, Gas Flared Free and Miscellaneous Oil Revenue decreased considerably.”

“The Distributable Statutory Revenue for the month is N1.672 billion, and VAT is N756.6 billion, bringing the total to N2.429 trillion,” the statement said.