Africazine:
The Federation Account Allocation Committee has announced significant revenue distributions for February 2026.
A total of N1.894 trillion was allocated among the Federal Government, states, and local councils, as revealed in a statement from the Accountant-General’s Office. This amount includes N1.274 trillion from statutory revenue and N619.119 billion from Value Added Tax.
February 2026 Revenue Distribution Details
The revenue distribution was disclosed during the March 2026 FAAC meeting in Abuja. The total gross revenue available for February was N2.230 trillion. After deductions of N77.302 billion for collection costs and N259.078 billion for transfers, refunds, and savings, the distributable revenue stood at N1.894 trillion.
The Federal Government received N675.088 billion, while state governments got N651.525 billion and local councils received N456.467 billion. Additionally, N110.949 billion was allocated to states as derivation revenue from mineral resources.
Nigeria: Key figures on Federation Account Revenue
- N1.894 trillion total distributable revenue
- N1.274 trillion from statutory revenue
- N619.119 billion from Value Added Tax
- N2.230 trillion total gross revenue
- N77.302 billion cost of collection
- N259.078 billion transfers, refunds, and savings
- N675.088 billion received by the Federal Government
- N651.525 billion received by state governments
- N456.467 billion received by local government councils
- N110.949 billion derivation revenue
- N613.174 billion Federal Government statutory revenue
- N311.010 billion state statutory revenue
- N239.776 billion local government statutory revenue
- N61.912 billion Federal Government VAT revenue
- N340.515 billion state VAT revenue
- N216.692 billion local government VAT revenue
Context of Revenue Changes in February
The communiqué highlighted a decrease in gross statutory revenue, which fell to N1.561 trillion, down N395.138 billion from January 2026. Similarly, gross VAT revenue decreased to N668.450 billion, a drop of N414.710 billion compared to the previous month.
Despite these declines, revenues from oil and gas royalties and excise duties saw significant increases in February. However, other tax receipts, including Petroleum Profit Tax and Companies Income Tax, experienced declines during the same period.
Next Steps for Revenue Management
- Monitor ongoing revenue trends for potential adjustments
- Evaluate the impact of tax declines on future allocations
- Consider strategies to enhance revenue from oil and gas sectors
The February 2026 revenue distribution underscores the complexities of Nigeria's fiscal landscape.
