FAAC: FG, States, LGs share N2.26trn as VAT revenue surge

The Federal Government, FG, 36 state governments and the 774 local government councils shared a total of N2.257 trillion from the Federation Account in April 2026, reflecting strong growth in revenue collections driven largely by higher Value Added Tax (VAT), Companies Income Tax (CIT), import duties and oil-related earnings.

The revenue allocation was approved at the May meeting of the Federation Account Allocation Committee (FAAC) held in Abuja, according to a statement issued by the Office of the Accountant General of the Federation.

The distributable revenue consisted of N1.260 trillion statutory revenue, N747.088 billion VAT revenue and a N250 billion augmentation.

A communiqué issued after the meeting showed that gross revenue available for the month stood at N3.184 trillion. From the amount, N113.756 billion was deducted as cost of collection, while N813.839 billion was allocated for transfers, refunds and savings.

The FG received N787.351 billion from the total distributable revenue, while state governments shared N772.360 billion.

Local government councils received N540.152 billion, while oil-producing states received N157.254 billion as 13 per cent derivation revenue.

A breakdown of the statutory revenue allocation showed that the Federal Government received N580.942 billion, states got N294.661 billion and local governments received N227.172 billion. The oil-producing states also shared the N157.254 billion derivation fund from the statutory component.

From the N747.088 billion VAT pool, the FG received N74.709 billion, states shared N410.898 billion, while local government councils received N261.481 billion.

The N250 billion augmentation was also distributed among the three tiers of government, with the Federal Government receiving N131.700 billion, states N66.800 billion and local governments N51.500 billion.

The latest revenue figures indicate a significant increase in collections compared to the previous month.

Gross statutory revenue rose to N2.378 trillion in April, representing an increase of N678.224 billion from the N1.699 trillion recorded in March.

Similarly, VAT collections increased by N142.192 billion, rising from N664.425 billion in March to N806.617 billion in April.

According to the FAAC communiqué, revenue inflows from Companies Income Tax, Capital Gains Tax, Stamp Duties, Import Duty, Oil and Gas Royalties and VAT recorded notable improvements during the period under review.

However, receipts from Petroleum Profit Tax and Hydrocarbon Tax declined considerably, while collections from Excise Duty and Common External Tariff levies recorded marginal decreases.

The increase in distributable revenue is expected to provide additional fiscal support to the three tiers of government as they grapple with rising expenditure obligations and ongoing infrastructure and social development projects.