BY COBHAM NSA – Nigeria’s three tiers of government shared a massive N2.428 trillion in Federation Account revenue for September 2026, marking another significant liquidity injection into the nation’s public treasuries across board
This massive financial windfall was officially distributed during the October 2026 Federation Account Allocation Committee (FAAC) meeting convened in Abuja, the Federal Capital Territory (FCT).
A breakdown of the N2.428 trillion total distributable revenue showed two primary financial engines where statutory revenue, with a dominant N1.672 trillion chunk drove the bulk of the allocation, while Value Added Tax (VAT), boasting a robust N756.587 billion consumer-driven component fueled the remainder of the monthly earnings.
According to the communiqué issued by the FAAC, total gross revenue of N3.913 trillion was available in the month of September 2026 with total deduction N131.758 billion as cost of collection while total transfers, refunds and savings gulped about N1.352 trillion in the month under consideration.
The communiqué further indicated that distributable gross statutory revenue of N3.096 trillion after deductions was higher by N246.384 billion than the sum of N2.850 trillion received in the preceding month of August 2026.
Additionally, gross revenue of N816.872 billion was available from VAT in September 2026, representing about N17.972 billion lower than the N834.843 billion that accrued in August 2026.
From the N2.428 trillion total distributable revenue, the Federal Government got the sum of N832.242 billion, the State Governments received N799.872 billion, the Local government Council share was N560.660 billion, while the sum of N236.049 billion, being 13 percent of mineral revenue was shared among benefiting State as derivation revenue.
Of the N1.672 billion statutory revenue for distribution, N756.583 billion went to the Federal Government coffers, the State Governments got N383.749 billion, and the Local Government Councils received N295.855 billion, with N236.049 billion shared as 13 percent mineral derivation revenue to the benefiting States..
Another highlight from the FAAC disbursements was the N756.587 billion distributable VAT revenue where the Federal Government got a modest N75.659 billion, State governments secured the lion’s share of N416.123 billion, leaving the Local Government Councils walking away with N264.805 billion to fund grassroots development.
However, the month also recorded shifting economic fortunes in Nigeria’s revenue machinery, as a dramatic surge in fossil fuel and trade taxes barely cushioned a devastating plunge across corporate and consumer sectors. While oil and border revenues drove the nation’s financial engine, the Petroleum Profit Tax (PPT), Hydrocarbon Tax (HT), Petroleum Royalties, Import Duty, CET Levies, and Excise Duty all recorded significant increases.
However, this momentum was undercut by a considerable crash in critical fiscal streams, as Companies Income Tax (CIT), Capital Gains Tax & Stamp Duties (CGT & SDT), Value Added Tax (VAT), Mineral Royalties, Gas Flared Penalties, Rental Gas Flared Fees, and Miscellaneous Oil Revenue all witnessed noticeable drops during the same period.
