The Federation Account Allocation Committee (FAAC) announced on March 15 that it distributed a total of N1.894 trillion to the federal, state, and local governments as allocation for February 2026, from a gross total of N2.230 trillion.
This monthly allocation is important because it provides funding for government operations at all levels across Nigeria. The funds are sourced from statutory revenue and value added tax (VAT), which are critical for public services and development projects.
According to the committee, the federal government received N675.086 billion, states received N651.525 billion, and local government councils were allocated N456.467 billion. Oil-producing states also received an additional N110.949 billion as derivation, representing 13% of mineral revenue. The cost of collection was set at N77.302 billion, while transfers, interventions, and refunds accounted for N259.078 billion.
The communique issued after the meeting stated that gross VAT revenue for February was N668.450 billion—down by N414.710 billion compared to the previous month’s distribution of N1.083 trillion. Of this VAT amount, after deducting costs and transfers totaling nearly N49 billion, the remaining sum was shared among the three tiers: federal government (N61.912 billion), states (N340.515 billion), and local governments (N216.692 billion).
Gross statutory revenue for February stood at N1.561 trillion—lower than January’s figure by about N395 billion—with deductions made for collection costs and transfers before distribution to all levels of government and oil-producing states.
The FAAC noted significant increases in oil and gas royalty as well as excise duty collections during the period; however, petroleum profit tax, hydrocarbon tax, companies income tax/capital gains tax/solid minerals development tax, and VAT saw substantial decreases compared to previous months.
The committee concluded that distributable revenue for February comprised statutory revenue of N1.274 trillion plus VAT of N619.119 billion.