The Federal Government, 36 states and 774 local government councils shared N2.428 trillion from the Federation Account in October 2026, representing an increase of N90 billion, or 3.85 per cent, from the N2.338 trillion distributed in September.
The increase followed a recovery in statutory revenue, supported by improved receipts from petroleum-related taxes, royalties and import duties, despite a decline in Value Added Tax collections.
The allocation, which represents revenue generated in September, was approved at the October meeting of the Federation Account Allocation Committee held in Abuja.
Also read: FAAC Allocation: FG, States and LGCs Share N2.3trn for August
This was stated in a statement issued on Thursday by the Director of Press and Public Relations in the Office of the Accountant-General of the Federation, Bawa Mokwa.
According to the statement, “A total sum of N2.428 trillion, being September 2026 Federation Account Revenue, has been shared to the Federal Government, States and the Local Government Councils.”
Despite the improvement, the October allocation remained N579 billion, or 19.3 per cent, below the August peak, which was the highest monthly FAAC distribution in reviewed records dating back to 2019.
The allocation was also N122 billion, or 4.8 per cent, below the N2.550tn distributed in July, although it exceeded the N2.300 trillion shared in June.
According to the FAAC communiqué, gross statutory revenue increased by N246.384 billion, or approximately 8.6 per cent, to N3.096 trillion in September from N2.850 trillion in August.
The improvement followed a sharp contraction in the preceding month, when statutory revenue declined by N1.508 trillion from N4.359 trillion recorded in July.
“According to the communiqué, gross statutory revenue of N3.096 trillion was received for the month of September 2026. This was higher than the sum of N2.850 trillion received in the preceding month by N246.384 billion,” the statement read.
However, gross VAT collections declined by N17.972 billion, or 2.2 per cent, to N816.872 billion
The decline reversed the increase recorded in August, when VAT receipts rose by N40.875 billion from N793.968 billion in July.
The statement said, “Gross revenue of N816.872 billion was available from the Value Added Tax in September 2026. This was lower than the N834.843 billion available in the month of August 2026 by N17.972 billion.”
Further analysis showed that total gross Federation Account revenue increased by N228 billion, or 6.2 per cent, from N3.685 trillion in August to N3.913 trillion in September.
However, the increase in gross collections did not translate into a corresponding rise in distributable revenue because deductions, transfers, refunds and savings also increased.
The communiqué indicated that N131.758 billion was deducted as cost of collection in September, compared with N125.142 billion in August, representing an increase of N6.616 billion.
Similarly, transfers, refunds and savings rose by N131 billion, or 10.7 per cent, from N1.221 trillion to N1.352 trillion.
Consequently, the amount available for distribution increased by only N90 billion despite the N228 billion rise in gross revenue.
The N2.428 trillion distributable revenue comprised N1.672 trillion in statutory revenue and N756.587 billion from VAT.
The statutory component increased by N107 billion, or 6.8 per cent, from N1.565 trillion distributed at the September meeting.
In contrast, distributable VAT declined by N16.646 billion, or 2.2 per cent, from N773.233 billion to N756.587 billion.
A breakdown of the October allocation showed that the Federal Government received N832.242 billion, compared with N804.897 billion in September, representing an increase of N27.345 billion.
The 36 state governments received N799.872 billion, up by N5.559 billion from N794.313 billion in the previous month.
