2026 FAAC Allocation Hits N2.257 Trillion As FG, States, LGs Share Higher April Revenue

The Federation Account Allocation (FAAC) Committee has approved the distribution of N2.257 trillion from April 2026 revenue collections to the Federal Government, state governments and local government councils, reflecting stronger revenue inflows across key tax and non-tax sources.

The latest allocation, approved at a FAAC meeting in Abuja, was drawn from statutory revenue, Value Added Tax collections and an additional augmentation component. The disbursement comes as government revenues continue to benefit from improved collections in several major tax categories and stronger earnings from parts of the oil and gas sector.

The revenue-sharing outcome underscores the continued importance of the Federation Account as the primary channel for distributing federally collected income to all tiers of government. Brandspur Banking News Desk reports that the April 2026 allocation represents one of the largest monthly distributions recorded in recent years, driven by significant growth in both statutory revenue and VAT receipts.

Official figures showed that total gross revenue available for the month reached N3.184 trillion before deductions for collection costs as well as transfers, refunds and savings obligations. After the necessary adjustments, N2.257 trillion was approved for distribution among beneficiaries.

Statutory revenue accounted for the largest share of the distributable amount, contributing N1.260 trillion, while VAT generated N747.088 billion. An additional N250 billion augmentation was included to support the final allocation pool.

Data released after the meeting indicated that gross statutory revenue increased substantially compared with the previous month, reflecting stronger inflows from major revenue sources and improved government earnings.

VAT collections also recorded a notable month-on-month increase, highlighting continued growth in consumption-related tax receipts and broader economic activity across sectors contributing to the tax base.

Under the approved sharing formula, the Federal Government received N787.351 billion from the total distributable revenue, while state governments shared N772.360 billion. Local government councils collectively received N540.152 billion.

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Oil-producing states also received N157.254 billion as derivation revenue, representing the constitutionally mandated share linked to mineral resource earnings.

A breakdown of the statutory revenue allocation showed that the Federal Government received N580.942 billion, states received N294.661 billion, and local governments received N227.172 billion, alongside the derivation allocation to eligible states.

From the VAT component, the Federal Government received N74.709 billion, while states shared N410.898 billion and local government councils received N261.481 billion.

The N250 billion augmentation was distributed across the three tiers of government, with the Federal Government receiving N131.700 billion, states receiving N66.800 billion and local governments receiving N51.500 billion.

FAAC also reported improved performance in several revenue streams during the period under review, including Companies Income Tax, Capital Gains Tax, Stamp Duties, Import Duties, VAT receipts and oil and gas royalties.

However, not all revenue sources recorded growth, as collections from Petroleum Profit Tax, Hydrocarbon Tax, Excise Duties and CET levies declined compared with the previous month.

The latest FAAC distribution is expected to provide additional fiscal support for federal, state and local government budgets as authorities continue to navigate infrastructure, social spending and economic development priorities in 2026.