The Federation Account Allocation Committee (FAAC) has distributed a total of ₦1.89 trillion as revenue for February 2026 among the Federal Government, state governments and the 774 local government councils.
The revenue was shared during the March 2026 meeting of FAAC held in Abuja on Friday, March 14.
It was reports that the meeting was chaired by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun.
According to a statement issued by the Federal Ministry of Finance, the total gross revenue available for February stood at ₦2.23 trillion before the statutory deductions were made.
From the total distributable amount of ₦1.89 trillion, the Federal Government received ₦675.08 billion, while state governments shared ₦651.52 billion. Local government councils received ₦456.46 billion, while the sum of ₦110.94 billion was allocated to oil-producing states as 13 per cent derivation revenue from mineral resources.
The committee explained that from the gross revenue of ₦2.23 trillion, a total of ₦77.30 billion was deducted as the cost of revenue collection, while ₦259.07 billion was set aside for transfers, interventions and refunds before the remaining balance was distributed among the three tiers of government.
The communiqué also revealed that revenue generated from value-added tax recorded a significant drop during the period under review.
According to FAAC, gross VAT revenue for February stood at ₦668.45 billion, representing a sharp decline from the ₦1.08 trillion recorded in January. The drop indicated a reduction of about ₦414.71 billion in VAT receipts.
From the VAT revenue, ₦26.73 billion was deducted as the cost of collection, while ₦22.59 billion was allocated for transfers, interventions and refunds. After the deductions, the remaining ₦619.11 billion was shared among the three tiers of government.
Out of this amount, the Federal Government received ₦61.91 billion, the state governments received ₦340.51 billion, while the local government councils were allocated ₦216.69 billion.
The committee also disclosed that statutory revenue for February declined when compared with the previous month. Gross statutory revenue for the month stood at ₦1.56 trillion, which was lower than the ₦1.95 trillion recorded in January, indicating a decline of ₦395.13 billion.
From the statutory revenue generated in February, the sum of ₦50.56 billion was deducted as cost of collection, while ₦236.48 billion was allocated for transfers, interventions and refunds.
After the deductions, the remaining ₦1.27 trillion was distributed among the three tiers of government. The Federal Government received ₦613.17 billion from the statutory revenue, while the states received ₦311.01 billion and the local government councils received ₦239.77 billion. Oil-producing states also received ₦110.94 billion as derivation revenue representing 13 per cent of mineral resources.
The committee further noted that revenue from oil and gas royalties as well as excise duties recorded notable increases during the month under review.
However, it stated that several key revenue streams recorded significant declines, including petroleum profit tax, hydrocarbon tax, companies’ income tax, capital gains tax, stamp duties and value-added tax.
The communiqué also indicated that import duties and the common external tariff recorded slight increases during the period.
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