As far as February 2026 is concerned, the Federation Account Allocation Committee (FAAC) has shared a total of N1.894 trillion among the three tiers of government as federation allocation.
In a statement issued yesterday (Friday), by the Federal Ministry of Finance, the distribution was made from a gross revenue of N2.230 trillion generated during the month.
Drum Africa learnt that from the amount shared, the Federal Government received N675.086 billion, the 36 states received N651.525 billion, while the 774 local government councils got N456.467 billion.
Information also shows that the oil-producing states also received an additional N110.949 billion as derivation revenue, representing the usual 13 per cent of mineral proceeds.
According to the statement as well, N77.302 billion was paid to revenue-generating agencies as the cost of collection, while N259.078 billion was allocated for transfers, interventions and refunds.
The finance ministry further explained that gross revenue from Value Added Tax (VAT) for February stood at N668.450 billion, compared to N1.083 trillion distributed in the preceding month, indicating a decline of N414.710 billion.
It also explained that from the VAT revenue, N26.738 billion was deducted as cost of collection, while N22.593 billion was set aside for transfers, interventions and refunds.
It says that the remaining N619.119 billion was shared among the three tiers of government, with the Federal Government receiving N61.912 billion, the states N340.515 billion and local government councils N216.692 billion.
In a related development, the gross statutory revenue of N1.561 trillion recorded in February was lower than the N1.957 trillion received in the previous month, representing a decrease of N395.138 billion.
The statutory revenue shows that, N50.564 billion was deducted as cost of collection, while N236.485 billion was allocated for transfers, interventions and refunds.
It also explained that the balance of N1.274 trillion was distributed as follows: the Federal Government received N613.174 billion, states got N311.010 billion, and local governments received N239.776 billion, while N110.949 billion was allocated as derivation revenue to oil-producing states.
The ministry stressed that revenue from oil and gas royalty as well as excise duty recorded significant increases during the period.
It noted also that collections from Petroleum Profit Tax (PPT), Hydrocarbon Tax (HT), Companies Income Tax (CIT), Capital Gains Tax (CGT), Stamp Duties (SDT) and Value Added Tax (VAT) declined substantially during the month under review.
