FAAC Allocation Rises to N2.428tn as Oil Revenue Rebounds

The Federal Government, the 36 states and 774 local government councils shared N2.428tn from the Federation Account in October 2026. That is N90bn, or 3.85 per cent, more than the N2.338tn distributed in September.

The rise followed a recovery in statutory revenue, helped by improved receipts from petroleum-related taxes, royalties and import duties, even as Value Added Tax collections fell. The money represents revenue generated in September and was approved at the October meeting of the Federation Account Allocation Committee in Abuja.

The Director of Press and Public Relations in the Office of the Accountant-General of the Federation, Bawa Mokwa, announced the sharing in a statement on Thursday. "A total sum of N2.428tn, being September 2026 Federation Account Revenue, has been shared to the Federal Government, States and the Local Government Councils," the statement said.

Still below August peak

October's distribution is a modest recovery from September, when allocations fell by N669bn, or 22.2 per cent, from the record N3.007tn shared in August.

The latest figure remains N579bn, or 19.3 per cent, below the August peak, the highest monthly FAAC distribution in records dating back to 2019. It is also N122bn, or 4.8 per cent, below the N2.550tn shared in July, though it beat the N2.300tn distributed in June.

Statutory revenue up, VAT down

Gross statutory revenue rose by N246.384bn, about 8.6 per cent, to N3.096tn in September from N2.850tn in August. That followed a sharp contraction the month before, when statutory revenue dropped by N1.508tn from N4.359tn in July.

"According to the communiqué, gross statutory revenue of N3.096tn was received for the month of September 2026. This was higher than the sum of N2.850tn received in the preceding month by N246.384bn," the statement read.

Gross VAT collections went the other way, falling by N17.972bn, or 2.2 per cent, to N816.872bn in September from N834.843bn in August. The decline reversed August's increase, when VAT receipts rose by N40.875bn from N793.968bn in July.

"Gross revenue of N816.872bn was available from the Value Added Tax in September 2026. This was lower than the N834.843bn available in the month of August 2026 by N17.972bn," the statement said.

Deductions swallow part of the gain

Total gross Federation Account revenue rose by N228bn, or 6.2 per cent, from N3.685tn in August to N3.913tn in September. But the higher collections did not flow fully into distributable revenue because deductions, transfers, refunds and savings also grew.

Cost of collection deducted in September was N131.758bn, up N6.616bn from N125.142bn in August. Transfers, refunds and savings rose by N131bn, or 10.7 per cent, from N1.221tn to N1.352tn. As a result, the amount available for sharing rose by only N90bn despite the N228bn jump in gross revenue.

The N2.428tn distributable sum comprised N1.672tn in statutory revenue and N756.587bn from VAT. Statutory revenue rose by N107bn, or 6.8 per cent, from N1.565tn, while distributable VAT fell by N16.646bn, or 2.2 per cent, from N773.233bn to N756.587bn.

The Federal Government received N832.242bn, up N27.345bn from N804.897bn. The 36 states got N799.872bn, an increase of N5.559bn from N794.313bn in September.

For states and local councils, the October payout offers some relief after September's steep drop, but it stays below the July and August levels that many budgets had counted on.