The three tiers of government shared a total of N1.894 trillion from the Federation Account for February 2026, marking a significant drop in revenue compared to the previous month.
The distribution was announced on Friday following the March 2026 meeting of the Federation Account Allocation Committee (FAAC) in Abuja. The amount shared represents a decrease from the figures recorded in January, largely driven by a substantial decline in both statutory revenue and Value Added Tax (VAT) collections.
According to a statement issued by the Director of Press and Public Relations in the Office of the Accountant-General of the Federation, Bawa Mokwa, the distributable revenue comprised N1.274 trillion from the statutory account and N619.119 billion from VAT.
The communiqué issued after the meeting revealed that total gross revenue available in February stood at N2.230 trillion. From this, N77.302 billion was deducted to cover the cost of collection, while N259.078 billion was set aside for transfers, refunds, and savings.
A closer look at the revenue streams showed a sharp decline month-on-month. Gross statutory revenue for February was N1.561 trillion, a decrease of N395.138 billion compared to the N1.957 trillion recorded in January 2026. Similarly, gross VAT revenue for the month was N668.450 billion, which is N414.710 billion lower than the N1.083 trillion posted in the previous month.
From the total distributable sum of N1.894 trillion, the Federal Government received N675.088 billion, state governments got N651.525 billion, and local government councils received N456.467 billion. Additionally, N110.949 billion was shared with benefitting states as 13 per cent derivation revenue from mineral sources.
A breakdown of the statutory revenue of N1.274 trillion showed the Federal Government receiving N613.174 billion, states taking N311.010 billion, and local government councils getting N239.776 billion. The N110.949 billion derivation was also distributed from this pool.
From the VAT revenue of N619.119 billion, the Federal Government received N61.912 billion (15 per cent), state governments received N340.515 billion (50 per cent), and local government councils got N216.692 billion (35 per cent).
The communiqué noted mixed performances across various revenue streams. While oil and gas royalty and excise duty recorded significant increases in February, other major revenue lines witnessed substantial declines. These include Petroleum Profit Tax (PPT), Hydrocarbon Tax (HT), Companies Income Tax (CIT), Capital Gains Tax (CGT), Stamp Duties, and Value Added Tax (VAT).
On a positive note, import duty and Common External Tariff (CET) receipts increased marginally during the period under review.
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