FAAC Disburses N1.894trn February Revenue To FG, States, LGAs

The Federation Account Allocation Committee (FAAC) shared a total of N1.894 trillion among the three tiers of government at its March 2026 meeting, representing the federation account revenue accrued in February 2026.

The committee was chaired by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun.

The distributable sum was drawn from a gross pool of N2.230 trillion. After deducting N77.302 billion for the cost of collection and N259.078 billion for transfers, intervention, and refunds, the net amount of N1.894 trillion was shared among the federal, state, and local government tiers, along with oil-producing states.

Of the total distributable amount, the federal fovernment received N675.086 billion, while state governments collectively received N651.525 billion and local government areas received N456.467 billion. Oil-producing states received an additional N110.949 billion as derivation, representing 13 percent of mineral revenue.

Gross Statutory Revenue for February 2026 stood at N1.561 trillion, a drop of N395.138 billion from the N1.957 trillion recorded in January 2026. After deducting N50.564 billion for collection costs and N236.485 billion for transfers, intervention, and refunds, the distributable statutory balance was N1.274 trillion.

From the statutory pool, the federal government received N613.174 billion, State Governments received N311.010 billion, LGCs received N239.776 billion, and oil-producing states received the N110.949 billion derivation allocation.

Gross Value Added Tax (VAT) revenue for February 2026 amounted to N668.450 billion, a significant decline from the N1.083 trillion distributed in the preceding month — a shortfall of N414.710 billion.

After setting aside N26.738 billion for collection costs and N22.593 billion for transfers and refunds, the distributable VAT balance was N619.119 billion.

States were the largest beneficiaries of VAT proceeds, receiving N340.515 billion. LGCs received N216.692 billion, while the Federal Government received N61.912 billion from this component.

According to the FAAC communiqué, oil and gas royalty and excise duty recorded significant increases during the month. Import Duty and CET Levies also rose, though only marginally. In contrast, petroleum profit tax, hydrocarbon tax, companies income tax and capital gains tax, stamp duty tax, and VAT all declined substantially, contributing to the overall reduction in the distributable pool relative to Januaryg