Revenue shared among Nigeria’s three tiers of government declined in February as weaker inflows from key tax sources and consumption taxes weighed on the country’s fiscal receipts, according to the latest distribution figures released by the Federation Account Allocation Committee (FAAC).
The committee shared a total of N1.894 trillion from the Federation Account for February 2026, distributed to the federal, state and local governments at its March meeting held in Abuja.
While the allocation remains substantial, the figures reveal a sharp decline in revenue inflows compared with the previous month, reflecting weaker performance across several major tax streams including value-added tax and petroleum-related revenues.
According to a communiqué issued after the meeting, total gross revenue available in February stood at N2.230 trillion. From this amount, N77.302 billion was deducted as the cost of revenue collection, while N259.078 billion was allocated for statutory transfers, refunds and savings before the final distributable amount was determined.
The resulting distributable revenue pool of N1.894 trillion consisted of N1.274 trillion in statutory revenue and N619.119 billion generated from Value Added Tax (VAT).
The latest figures indicate a significant decline in both statutory and VAT revenue compared with January, highlighting the volatility of Nigeria’s fiscal inflows.
Gross statutory revenue dropped to N1.561 trillion in February, representing a decline of N395.138 billion from the N1.957 trillion recorded in January.
Similarly, VAT collections fell sharply during the period. Gross VAT revenue declined to N668.450 billion from N1.083 trillion in the previous month, a drop of N414.710 billion.
Despite the drop, oil-related inflows provided some support during the month.
The communiqué revealed that revenue from oil and gas royalties as well as excise duties recorded notable increases, partially offsetting declines in other revenue streams.
However, several major tax categories recorded significant declines.
These included receipts from Petroleum Profit Tax (PPT), Hydrocarbon Tax (HT), Companies Income Tax (CIT), Capital Gains Tax (CGT) and Stamp Duties (SDT).
Meanwhile, collections from import duties and the Common External Tariff (CET) recorded only marginal increases.
How the funds were shared
Of the N1.894 trillion distributed for February, the federal government received N675.088 billion.
State governments collectively received N651.525 billion, while the 774 local government councils shared N456.467 billion.
In addition, N110.949 billion was allocated to oil-producing states as derivation revenue, representing 13 per cent of mineral revenues generated from their territories in accordance with constitutional provisions.
A breakdown of the statutory revenue distribution shows that from the N1.274 trillion pool, the federal government received N613.174 billion.
State governments received N311.010 billion, while local governments were allocated N239.776 billion. Oil-producing states received N110.949 billion from the statutory revenue as derivation.
From the N619.119 billion VAT revenue, the federal government received N61.912 billion, while state governments received N340.515 billion and local governments received N216.692 billion.
