Nigeria’s revenue inflow to the three tiers of government declined sharply in February 2026, as the Federation Account Allocation Committee (FAAC) shared ₦1.894 trillion following significant drops in statutory revenue and Value Added Tax collections.
The allocation was approved at the March 2026 FAAC meeting held in Abuja and detailed in a communiqué issued by the Director of Press and Public Relations, Bawa Mokwa.
Data from the committee showed that both statutory revenue and VAT recorded steep declines compared to figures reported in January, reducing the pool of funds available to the Federal Government, states and local government councils.
According to the communiqué, gross statutory revenue fell from ₦1.957 trillion in January to ₦1.561 trillion in February, representing a decline of ₦395.138 billion.
VAT revenue also dropped significantly, sliding from ₦1.083 trillion in January to ₦668.450 billion in February — a reduction of ₦414.710 billion.
Despite the declines, a total of ₦1.894 trillion was eventually distributed after deductions.
The distributable revenue consisted of ₦1.274 trillion from statutory revenue and ₦619.119 billion generated from VAT.
The committee reported that the total gross revenue available for February stood at ₦2.230 trillion.
From this amount, ₦77.302 billion was deducted as the cost of collection, while ₦259.078 billion was allocated for transfers, refunds and savings.
After these deductions, the remaining ₦1.894 trillion was shared among the three tiers of government in line with Nigeria’s revenue-sharing formula.
From the distributable revenue, the Federal Government received ₦675.088 billion.
The 36 state governments shared ₦651.525 billion, while the 774 local government councils received ₦456.467 billion.
In addition, oil-producing states received ₦110.949 billion as 13 per cent derivation revenue from mineral resources.
A breakdown of the statutory revenue component showed that the Federal Government received ₦613.174 billion, states got ₦311.010 billion and local governments received ₦239.776 billion.
Oil-producing states also received ₦110.949 billion from this component as derivation revenue.
From the ₦619.119 billion generated as VAT, the Federal Government received ₦61.912 billion, states received ₦340.515 billion, while local government councils shared ₦216.692 billion.
FAAC noted that oil and gas royalties as well as excise duties recorded increases during the period.
However, major revenue streams including Petroleum Profit Tax, Hydrocarbon Tax, Companies Income Tax, Capital Gains Tax, Stamp Duties and VAT all recorded significant declines.
The committee also reported slight increases in import duty and the Common External Tariff during the month under review.
The Federation Account Allocation Committee meets monthly to distribute revenues paid into the federation account among the Federal Government, state governments and local government councils.
