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By Godswill Michael
The Federation Account Allocation Committee (FAAC) has shared a total of N2.257 trillion as federation revenue for April 2026 among the Federal Government, States, and Local Government Councils.
The allocation was announced in a press release issued on Monday, by the Office of the Accountant General of the Federation, following the FAAC meeting held in May 2026 in Abuja.
According to the communiqué, “a total sum of N2.257 trillion, being April 2026 Federation Account Revenue, has been shared to the Federal Government, States and the Local Government Councils.”
The document noted that the distributable sum comprised “distributable statutory revenue of N1.260 trillion, distributable Value Added Tax (VAT) revenue of N747.088 billion and augmentation of N250.000 billion.”
It stated that total gross revenue for April 2026 stood at N3.184 trillion, with deductions made for revenue collection costs, transfers, refunds, and savings. Specifically, “total deduction for cost of collection was N113.756 billion while total transfers, refunds and savings was N813.839 billion.”
From the shared amount, the Federal Government received N787.351 billion, States received N772.360 billion, while Local Government Councils got N540.152 billion. In addition, N157.254 billion, representing 13 per cent derivation revenue from mineral-producing states, was distributed accordingly.
The Federation Account Allocation Committee is the statutory body responsible for distributing revenue generated by the federation among the three tiers of government. These revenues are largely drawn from oil earnings, taxes such as Companies Income Tax, Value Added Tax, import duties, and other federally collectible revenues.
The monthly allocation is critical because it determines how much money each level of government has available to fund public services, pay salaries, execute capital projects, and meet recurrent obligations.
Under the sharing formula, revenue is divided into statutory allocation, VAT, and other special components such as augmentation, with further deductions for cost of collection and statutory transfers before distribution.
The 13 per cent derivation component is specifically reserved for oil-producing states as compensation for natural resource extraction within their territories.
The April 2026 allocation comes at a time when most subnational governments remain heavily dependent on FAAC disbursements to meet basic financial obligations.
For many states and local governments, especially those with weak internally generated revenue, monthly FAAC inflows are the backbone of budget implementation. These funds are used to pay civil servant salaries, fund primary healthcare, support education systems, maintain local infrastructure, and finance security and administrative services.
The scale of the April allocation, therefore has direct implications for governance performance across the country. In practical terms, increases in FAAC revenue can ease fiscal pressure on state governments, reduce salary arrears, and improve execution of ongoing projects. Conversely, any decline in monthly allocations often translates into delayed payments and stalled public services.
The report also showed signs of improving revenue performance in key tax categories. According to the communiqué, “gross statutory revenue of N2.378 trillion was received for the month of April 2026,” which was higher than the previous month by N678.224 billion. VAT revenue also rose significantly, indicating stronger consumption-related tax inflows.
However, the document noted mixed performance across revenue streams. While Companies Income Tax (CIT), Capital Gains Tax (CGT), import duties, oil and gas royalties, and VAT increased, other sources such as Petroleum Profit Tax (PPT), Hydrocarbon Tax (HT), and excise duties recorded declines.
From the N1.260 trillion statutory revenue, the Federal Government received N580.942 billion, States got N294.661 billion, and Local Governments received N227.172 billion, while N157.254 billion was allocated as derivation to oil-producing states.
From the VAT component of N747.088 billion, the Federal Government received N74.709 billion, States received N410.898 billion, and Local Governments received N261.481 billion.
For the N250 billion augmentation fund, the Federal Government received N131.700 billion, States got N66.800 billion, and Local Governments received N51.500 billion.