Africazine:
The Federation Account Allocation Committee has allocated N2.257 trillion for April 2026, impacting Nigeria’s federal and state governments.
This allocation includes N1.260 trillion from statutory revenue, N747.088 billion from Value Added Tax (VAT), and N250 billion as augmentation. The total gross revenue available for April was N3.184 trillion.
Nigeria’s April Revenue Allocation Breakdown
The recent allocation from the Federation Account highlights significant revenue distribution among Nigeria’s government tiers. The Federal Government received N787.351 billion, while the 36 states collectively got N772.360 billion. Local government councils received N540.152 billion, and oil-producing states were allocated N157.254 billion as derivation revenue.
This distribution reflects a robust increase in gross statutory revenue, which rose to N2.378 trillion in April, up by N678.224 billion from March 2026. VAT revenue also saw a notable increase, reaching N806.617 billion, an increase of N142.192 billion compared to the previous month.
Nigeria: Key figures on revenue allocation
- N2.257 trillion total revenue allocation
- N1.260 trillion from statutory revenue
- N747.088 billion from Value Added Tax (VAT)
- N250 billion as augmentation
- N3.184 trillion total gross revenue
- N787.351 billion received by the Federal Government
- N772.360 billion received by the 36 states
- N540.152 billion received by local government councils
- N157.254 billion allocated to oil-producing states
Context of Revenue Growth in Nigeria
The increase in revenue is attributed to significant rises in collections from various taxes, including Companies Income Tax and Value Added Tax. However, there were declines in revenues from Petroleum Profit Tax and Hydrocarbon Tax, indicating mixed performance across different revenue streams.
This allocation reflects ongoing efforts to manage and distribute Nigeria’s resources effectively, ensuring that all levels of government receive necessary funding.
Next Steps for Nigeria’s Revenue Management
- Monitor the performance of tax collections in the coming months.
- Evaluate the impact of revenue distribution on local government projects.
- Assess the performance of declining revenue sources for potential reforms.
The allocation of N2.257 trillion underscores the importance of effective revenue distribution in Nigeria's governance.
