FG, States, LGs Share N2.43trn as VAT Revenue Falls in September

The Federal Government, state governments and local government councils shared N2.428 trillion in September 2026, despite a decline in Value Added Tax (VAT) revenue.

The allocation, announced by the Federation Account Allocation Committee (FAAC), rose from the N2.338 trillion shared among the three tiers of government in August.

A communiqué issued after the committee’s meeting in Abuja showed that the September allocation comprised N1.672 trillion in statutory revenue and N756.587 billion from VAT.

The committee reported gross revenue of N3.913 trillion for the month. It deducted N131.758 billion as the cost of collection, while transfers, refunds and savings accounted for N1.352 trillion.

Gross statutory revenue increased to N3.096 trillion in September from N2.850 trillion in August, representing a rise of N246.384 billion.

However, gross VAT revenue fell to N816.872 billion from N834.843 billion in August, a decline of N17.972 billion.

Under the September allocation, the Federal Government received N832.242 billion, while state governments got N799.872 billion.

Local government councils received N560.660 billion. The committee also allocated N236.049 billion to benefiting states as the 13 per cent derivation share from mineral resources.

A breakdown of the statutory revenue showed that the Federal Government received N756.583 billion, while state governments got N383.749 billion.

Local government councils received N295.855 billion from the statutory revenue pool. The benefiting states also received N236.049 billion as derivation revenue.

From the N756.587 billion VAT pool, the Federal Government received N75.659 billion. State governments got N416.123 billion, while local government councils received N264.805 billion.

FAAC attributed the mixed revenue performance to changes in collections from various sources. Receipts from Petroleum Profit Tax, Hydrocarbon Tax, petroleum royalties, import duty, Common External Tariff levies and excise duty increased significantly.

In contrast, revenue from Companies Income Tax, Capital Gains Tax, Stamp Duties, VAT and mineral royalties declined. Gas-flaring penalties and fees, alongside miscellaneous oil revenue, also recorded lower receipts.

The September allocation gives the three tiers of government additional funds to meet their obligations and finance public services. However, the fall in VAT revenue highlights the uneven performance of key revenue sources.

FAAC distributes revenue accruing to the Federation Account among the federal, state and local governments in line with the applicable allocation formula.