Africazine:
The Federation Account Allocation Committee has announced significant revenue distributions for February 2026.
A total of ₦1.894 trillion was allocated among the Federal Government, state governments, and local councils. This amount includes ₦1.274 trillion from statutory revenue and ₦619.119 billion from Value Added Tax (VAT).
February 2026 Revenue Distribution Breakdown
The FAAC meeting in Abuja revealed that the gross revenue available in February was ₦2.230 trillion before deductions. After deducting ₦77.302 billion for collection costs and ₦259.078 billion for transfers, refunds, and savings, the distributable revenue was confirmed at ₦1.894 trillion.
From this total, the Federal Government received ₦675.088 billion, while the 36 states shared ₦651.525 billion, and the 774 local government councils received ₦456.467 billion. Additionally, ₦110.949 billion was allocated to oil-producing states as derivation revenue.
Nigeria: Key figures on Revenue Allocation
- ₦1.894 trillion total revenue allocated
- ₦1.274 trillion from statutory revenue
- ₦619.119 billion from Value Added Tax (VAT)
- ₦2.230 trillion gross revenue available
- ₦675.088 billion received by the Federal Government
- ₦651.525 billion shared among states
- ₦456.467 billion received by local councils
- ₦110.949 billion distributed among oil-producing states
Trends in Nigeria’s Revenue Generation
The FAAC noted a decline in gross statutory revenue, which fell to ₦1.561 trillion in February from ₦1.957 trillion in January. Similarly, VAT revenue decreased to ₦619.119 billion from ₦668.450 billion in the previous month.
This trend indicates challenges in revenue generation that may impact future allocations. The committee’s findings highlight the need for ongoing assessment of revenue sources and distribution mechanisms.
Next Steps for Revenue Management
- Monitor revenue trends for March 2026
- Evaluate the impact of declining VAT and statutory revenues
- Consider adjustments to allocation strategies
The latest revenue allocation reflects Nigeria’s ongoing fiscal dynamics and the importance of effective resource management.
