The Federal Government, the 36 state governments and the 774 local government councils have shared a total of N1.894 trillion as revenue allocation for February 2026.
The money was shared by the Federation Account Allocation Committee (FAAC) during its March 2026 meeting held in Abuja.
Details of the revenue distribution were contained in a communiqué issued after the meeting and signed by the Director of Press and Public Relations at the Office of the Accountant-General of the Federation, Bawa Mokwa.
According to the communiqué, the total distributable revenue of N1.894 trillion came from two major sources: N1.274 trillion generated as statutory revenue and N619.119 billion from Value Added Tax.
The revenue was shared among the three tiers of government in line with Nigeria’s revenue-sharing formula, which determines how funds in the Federation Account are distributed among the Federal Government, states and local councils.
From the N1.894 trillion shared in February, the Federal Government received N675.088 billion.
The 36 state governments shared a total of N651.525 billion, while the 774 local government councils received N456.467 billion.
In addition to these allocations, oil-producing states received N110.949 billion as derivation revenue. This amount represents 13 per cent of revenue generated from mineral resources such as crude oil and gas, which is paid to states where the resources are produced.
A further breakdown of the statutory revenue showed that the Federal Government received N613.174 billion from the N1.274 trillion statutory pool.
The state governments received N311.010 billion from this component, while the local government councils received N239.776 billion.
The oil-producing states also received the N110.949 billion derivation revenue from this portion.
From the N619.119 billion generated through Value Added Tax, the Federal Government received N61.912 billion.
State governments received N340.515 billion from VAT, while the local government councils shared N216.692 billion.
The communiqué also revealed that the total gross revenue available for February 2026 was N2.230 trillion before deductions were made.
From this amount, N77.302 billion was deducted as the cost of revenue collection by government agencies responsible for generating the funds.
Another N259.078 billion was set aside for transfers, refunds and savings.
After these deductions were made, the balance of N1.894 trillion was shared among the Federal Government, states and local governments.
The FAAC report showed that statutory revenue fell in February compared with the previous month.
Gross statutory revenue for February stood at N1.561 trillion, which is lower than the N1.957 trillion recorded in January 2026.
This represents a decline of N395.138 billion within one month.
Statutory revenue includes earnings from major government sources such as crude oil sales, petroleum taxes, company taxes and customs duties.
These revenues are paid into the Federation Account and later shared among the three tiers of government.
Value Added Tax collections also recorded a significant drop during the period under review.
Gross VAT revenue for February was N668.450 billion. This is lower than the N1.083 trillion recorded in January 2026.
The figures show a decrease of N414.710 billion in VAT collections between January and February.
VAT is a consumption tax charged on goods and services across the country. Businesses collect the tax from consumers and remit it to the government.
Revenue from VAT has become one of the major sources of government income in Nigeria, especially as the country continues to seek ways to increase non-oil revenue.
Despite the overall decline in statutory and VAT revenue, the FAAC communiqué noted that some revenue streams recorded improvements during the month.
Oil and gas royalty payments increased during the period under review.
Excise duty, which is a tax imposed on certain locally manufactured goods, also recorded a notable rise.
However, several major tax categories recorded declines.
These include Petroleum Profit Tax, Hydrocarbon Tax, Companies Income Tax, Capital Gains Tax, Stamp Duties and Value Added Tax.
The drop in these revenue sources contributed to the lower amount available for distribution compared with the previous month.
The report also indicated that import duty collections and revenue from the Common External Tariff recorded slight increases.
Import duty is a tax paid on goods brought into the country, while the Common External Tariff is a regional tariff system used by countries within the Economic Community of West African States.
The monthly FAAC allocation remains a major source of funding for many state and local governments in Nigeria.
Most states depend heavily on the allocations to pay salaries, fund infrastructure projects and provide public services.
Local government councils also rely on the funds to support grassroots development, including community projects, health services and primary education.
In many cases, the FAAC allocation represents the largest share of revenue available to subnational governments.
The Federation Account is a central pool where revenues generated by the Federal Government are deposited.
These revenues come from several sources, including crude oil sales, taxes, customs duties and other government earnings.
The Federation Account Allocation Committee meets every month to review the revenue inflows and distribute the available funds to the three tiers of government.
The committee includes representatives of the Federal Government, the 36 states and other relevant government agencies.
The distribution is based on an approved revenue-sharing formula.
Under the current formula, the Federal Government receives the largest share, followed by state governments and then local governments.
The decline in key revenue sources highlighted in the February report reflects ongoing challenges facing Nigeria’s public finances.
Fluctuations in oil prices, changes in production levels and tax compliance issues can affect how much revenue flows into the Federation Account each month.
As a result, the amount shared among the three tiers of government often changes from month to month.
Despite these challenges, the FAAC allocation remains a critical financial lifeline for governments across the country.
The February distribution of N1.894 trillion will help federal, state and local governments fund their operations and meet financial obligations in the coming weeks.
