Bolatito Mercy
The Federation Account Allocation Committee (FAAC) has shared a total of N1.894 trillion among the three tiers of government as federation allocation for February 2026. This distribution was made from a gross revenue of N2.230 trillion generated during the month.
Here’s a breakdown of how the revenue was shared: the Federal Government received N675.088 billion, State Governments got N651.525 billion, Local Government Councils received N456.467 billion, and Derivation Revenue (13% mineral revenue) totaled N110.949 billion for oil-producing states.
The distributable revenue comprised N1.274 trillion from statutory revenue and N619.119 billion from Value Added Tax (VAT). The Federal Government received N613.174 billion from statutory revenue, while state governments got N311.010 billion and local government councils received N239.776 billion.
Gross statutory revenue for February stood at N1.561 trillion, representing a decline of N395.138 billion compared to January’s N1.957 trillion. VAT revenue also dropped to N668.450 billion from N1.083 trillion in January, a decrease of N414.710 billion.
Oil and gas royalty and excise duty recorded significant increases, while Petroleum Profit Tax, Hydrocarbon Tax, Companies Income Tax, Capital Gains Tax, Stamp Duties, and Value Added Tax declined substantially.
The FAAC meeting, held in Abuja, approved the revenue distribution in line with Nigeria’s revenue-sharing formula. The committee meets monthly to share revenues generated into the Federation Account among the Federal Government, states, and local government councils.
In 2025, the Federal Government, 36 states, and 774 local governments shared N26 trillion from FAAC revenue, representing an 84.2% year-on-year increase from N14.11 trillion in 2024. Oil-producing states received N1.6 trillion as 13% derivation fund.
The revenue-sharing formula requires that the nine oil-producing states receive 13% of oil revenue as derivation. This has contributed to the fiscal imbalance, with most states relying on federal transfers to fund their budgets.
