FAAC allocation Nigeria 2026 shows FG, states and LGs share ₦5.899tn in three months, boosted by VAT, oil revenue and statutory inflows

The Federation Account Allocation Committee (FAAC), a key revenue-sharing body in Nigeria, on Thursday, April 23, 2026, disbursed a total of ₦5.899 trillion to the Federal Government, 36 state governments and 774 local government councils, according to communiqués issued by the Office of the Accountant General of the Federation in Abuja.

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The FAAC allocation 2026 covers revenues generated between January and March 2026, reflecting sustained growth in distributable income despite fluctuations in key revenue streams such as Value Added Tax (VAT), Companies Income Tax (CIT), oil royalties and customs duties.

Of the total amount shared, ₦2.118 trillion went to the Federal Government, ₦2.016 trillion to state governments, and ₦1.439 trillion to local government councils.

In addition, oil-producing states received ₦327.8 billion as 13 per cent derivation revenue.

Monthly breakdowns show that ₦1.969 trillion was shared from January revenue, ₦1.894 trillion from February 2026 earnings, and ₦2.036 trillion from March 2026 collections, with March recording the highest allocation due to improved revenue performance and a ₦200 billion augmentation.

The Federal Government’s allocation increased steadily across the period, rising from ₦653.5 billion in January to ₦789.159 billion in March, reflecting stronger statutory inflows and the impact of augmentation funds.

State governments collectively received ₦2.016 trillion over the three months, with relatively stable disbursements supporting recurrent spending, infrastructure projects and debt obligations across the federation.

Local government councils received ₦1.439 trillion, reinforcing expectations of improved grassroots funding amid ongoing debates over financial autonomy and service delivery efficiency at the local level.

Oil-producing states benefited from derivation payments spread across the period, with allocations rising from ₦96.083 billion in January to ₦120.759 billion in March, in line with statutory entitlements linked to mineral resource revenues.

FAAC reports also revealed mixed performance across revenue sources. While VAT and certain tax categories recorded fluctuations, improvements in customs duties and other statutory inflows helped sustain overall distributable revenue levels.

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Despite the strong figures, analysts continue to caution that long-term fiscal stability will depend on improved domestic revenue generation, economic diversification and stricter expenditure management across all tiers of government.