FAAC Revenue Allocation Surges By 10.85% To N2.257trn For April

The Federation Account Allocation Committee (FAAC) has approved the distribution of N2.257 trillion in revenue generated during April 2026 to the three tiers of government, marking a significant 10.85 per cent increase from the preceding month’s allocation.

The substantial fiscal bump represents a net addition of N221 billion over the preceding April meeting, where N2.036 trillion in March revenue was distributed.

The FAAC shared a total of N2.257 trillion in federation revenue for April 2026 among the federal government, states, and the 774 local government areas.

The distribution was approved at the May 2026 FAAC meeting held in Abuja, according to a communiqué issued at the end of the meeting.

The distributable revenue comprised N1.260 trillion from statutory revenue, N747.088 billion from Value Added Tax (VAT) and an augmentation of N250 billion.

The communiqué showed that total gross revenue available in April stood at N3.184 trillion. From this amount, N113.756 billion was deducted as cost of collection, while N813.839 billion was set aside for transfers, refunds and savings.

FAAC reported a significant increase in revenue collections during the month, driven largely by stronger receipts from key tax and non-tax sources.

Gross statutory revenue rose to N2.378 trillion in April, representing an increase of N678.224 billion from the N1.699 trillion recorded in March.

Similarly, gross VAT revenue increased by N142.192 billion to N806.617 billion in April, compared with N664.425 billion generated in the preceding month.

From the total distributable revenue of N2.257 trillion, the Federal Government received N787.351 billion, while state governments got N772.360 billion.

The local government councils received N540.152 billion, while oil-producing states shared N157.254 billion as 13 per cent derivation revenue.

A breakdown of the statutory revenue allocation showed that the Federal Government received N580.942 billion, states received N294.661 billion, while local governments got N227.172 billion.

The benefiting states also received N157.254 billion from the statutory revenue component as derivation revenue.

From the N747.088 billion VAT pool, the Federal Government received N74.709 billion, states received N410.898 billion and local governments received N261.481 billion.

The augmentation of N250 billion was shared with the Federal Government receiving N131.700 billion, states N66.800 billion and local governments N51.500 billion.

According to the communiqué, collections from Companies Income Tax, Capital Gains Tax, Stamp Duties, Import Duty, Oil and Gas Royalties, as well as VAT recorded notable increases during the month.

However, receipts from Petroleum Profit Tax and Hydrocarbon Tax declined significantly, while revenues from Excise Duty and Common External Tariff levies recorded marginal decreases.