The Federation Account Allocation Committee (FAAC) distributed N1.89 trillion to the federal government, states, and local government councils in February 2026, during its March meeting chaired by Finance Minister Wale Edun. Total gross revenue stood at N2.23 trillion before deductions. The federal government received N675.08 billion, states shared N651.52 billion, local governments got N456.46 billion, and oil-producing states received N110.94 billion as 13 percent derivation.
However, Value Added Tax (VAT) revenue dropped significantly to N668.45 billion in February from N1.08 trillion in January, a decline of N414.71 billion. Gross statutory revenue also fell to N1.56 trillion from N1.95 trillion, a decrease of N395.13 billion. While oil and gas royalty and excise duty increased, revenues from petroleum profit tax, companies’ income tax, and stamp duties recorded notable declines. Import duty and external tariff saw slight increases.
Key Points
FG, states, LGAs share N1.89 trillion in February allocation.
VAT revenue crashes by N414 billion to N668.45 billion.
Statutory revenue drops N395 billion to N1.56 trillion.
Oil and gas royalty, excise duty increase.
Petroleum profit tax, CIT, stamp duties decline significantly.
FAAC shares N1.89 trillion, a massive sum, but with VAT and statutory revenues plunging, the February allocation tells a story of falling revenues and rising questions.
Sources: FAAC Communiqué
Comments are closed.