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FAAC Payouts Hit ₦5.8tn as Oil Earnings and Tax Reforms Strengthen Revenue

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

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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.

Also read: 2027: INEC’s Coup Against Dapo Abiodun

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.

Also read: FIRS Bos, Babatunde Fowler’s Wizardry

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.

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Theparkpay Technologies Limited Strengthens Global Payments Infrastructure with UK FCA Licence

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Theparkpay UK FCA licence strengthens the fintech’s global payments infrastructure as it expands regulated cross-border services across key markets (more…)

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Wale Tinubu Says Nigeria’s Creativity Can Drive Exports

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Wale Tinubu says Nigeria’s creativity can become a major export industry, creating jobs, attracting foreign exchange and building sustainable businesses (more…)

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TotalEnergies, AMNI Approve $800m Ima Gas Project

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TotalEnergies and Nigerian independent energy company AMNI International have taken the Final Investment Decision on the $800 million Ima Gas Project, more than five decades after the gas field was discovered.

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The Ima Gas Project, located in shallow waters across Oil Mining Leases 112 and 117 near Bonny Island, Rivers State, is expected to begin production in 2028 and reach a plateau of 350 million cubic feet of gas per day.

The development is expected to play a major role in supplying feed gas to Nigeria LNG, with the Ima field projected to provide about one-third of the additional gas required for the ongoing Train 7 expansion.

Train 7 is expected to increase Nigeria LNG’s liquefaction capacity from 22 million tonnes per annum to 30 million tonnes per annum, strengthening Nigeria’s capacity to process and export liquefied natural gas.

The Ima field was discovered in 1973 but remained undeveloped for more than 50 years. The Final Investment Decision provides the commercial and financial basis for finally developing the long-dormant resource.

Under the development plan, TotalEnergies will operate the project with a 40 per cent interest, while AMNI will hold the remaining 60 per cent.

The field will be developed using a single offshore platform connected to Nigeria LNG’s facility on Bonny Island through a 22-kilometre pipeline.

TotalEnergies said its investment in the project is more than $600 million, while the Federal Government described the overall Final Investment Decision as an $800 million investment.

At the FID signing ceremony in Abuja, TotalEnergies Exploration and Production Nigeria Managing Director, Mathieu Bouyer, described the decision as the culmination of a development process that had stretched across several decades.

He said the project reflected increased confidence in Nigeria’s investment environment and highlighted reforms targeting the non-associated gas sector as part of the factors that helped make the development commercially viable.

President Bola Tinubu welcomed the investment, saying the project demonstrated the potential of reforms introduced to reduce the cost and time required to develop oil and gas projects.

The President said the government had introduced incentives aimed specifically at unlocking onshore and shallow-water gas projects that had remained undeveloped for years.

He said the Ima development would create opportunities for Nigerian businesses, engineers, technicians and contractors, while generating jobs, economic activity in host communities and additional export earnings.

The project is also expected to have a strong Nigerian content component. TotalEnergies said all key contractors for the development would be Nigerian companies, while about 60 per cent of the workforce during the development phase is expected to come from host communities.

The development will incorporate measures aimed at reducing emissions. TotalEnergies said the platform would receive electricity from shore, operate without routine flaring and use permanent methane detection and monitoring systems.

The Federal Government said the project is part of efforts to turn Nigeria’s large natural gas reserves into productive assets capable of supporting industrialisation, energy supply, jobs and export earnings.

Special Adviser to the President on Energy, Olu Verheijen, said the Ima development illustrated the importance of creating commercial and investment conditions that allow previously stranded resources to be developed.

The government also noted that Nigerian financial institutions arranged 77 per cent of the project’s financing, further highlighting the participation of domestic financial institutions in the development.

For Nigeria LNG, the project comes as the company continues work on the Train 7 expansion, which is designed to increase the Bonny Island plant’s liquefaction capacity and strengthen the country’s position in the global LNG market.

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