The Federation Account Allocation Committee (FAAC) has distributed a total of N1.89 trillion to the federal government, states, and local government councils for the month of February 2026. The distribution was announced during the FAAC meeting held in Abuja on Friday, chaired by Wale Edun, Minister of Finance and Coordinating Minister of the Economy.

According to the Finance Ministry, the total gross revenue available in February stood at N2.23 trillion before deductions for collection costs and statutory transfers. From the N1.89 trillion total distributable revenue, the federal government received N675.08 billion, while the states shared N651.52 billion and local governments received N456.46 billion. Additionally, oil-producing states were allocated N110.94 billion as 13 percent derivation revenue from mineral resources.

Revenue Deductions and VAT Allocation

From the gross revenue, N77.30 billion was deducted as cost of collection, and N259.07 billion was set aside for transfers, refunds, and other statutory obligations.

The committee reported that gross revenue from value-added tax (VAT) for February was N668.45 billion, a decline of N414.71 billion compared with the N1.08 trillion collected in January. After deducting N26.73 billion for collection costs and N22.59 billion for transfers and interventions, the remaining N619.11 billion was distributed among the three tiers of government: the federal government received N61.91 billion, the states N340.51 billion, and local governments N216.69 billion.

Statutory Revenue Decline

FAAC noted that gross statutory revenue for February stood at N1.56 trillion, down from N1.95 trillion in January, reflecting a decline of N395.13 billion. After deductions for collection costs (N50.56 billion) and transfers (N236.48 billion), N1.27 trillion was available for distribution. From this, the federal government received N613.17 billion, states N311.01 billion, and local governments N239.77 billion, with N110.94 billion allocated to derivation revenue for mineral-producing states.

Sectoral Performance

The committee highlighted increases in oil and gas royalties and excise duties, while revenue from petroleum profit tax, hydrocarbon tax, companies’ income tax, capital gains tax, stamp duties, and VAT recorded notable declines. Import duties and the common external tariff showed slight increases during the month.

The February FAAC distribution underscores ongoing fluctuations in Nigeria’s revenue streams and highlights the need for strategic planning to stabilize fiscal inflows across the federal, state, and local levels.