The Federal Government, 36 state governments and 774 local councils shared N2.257 trillion from the Federation Account in April 2026, following the approval of the Federation Account Allocation Committee (FAAC) at its May meeting in Abuja. The distribution, detailed in a statement by the Office of the Accountant General of the Federation, was driven by strong revenue growth, particularly from Value Added Tax (VAT), Companies Income Tax (CIT), import duties and oil-related earnings. Gross revenue for April stood at N3.184 trillion, from which N113.756 billion was deducted for collection costs and N813.839 billion allocated to transfers, refunds and savings, leaving the distributable amount.
The Federal Government received N787.351 billion, states shared N772.360 billion and local governments were allocated N540.152 billion. Oil-producing states received N157.254 billion as 13 per cent derivation revenue. The distributable pool included N1.260 trillion in statutory revenue, N747.088 billion from VAT and a N250 billion augmentation. Under statutory allocation, the Federal Government received N580.942 billion, states N294.661 billion and local governments N227.172 billion. The oil-producing states' derivation share came from this component.
From the VAT revenue, the Federal Government received N74.709 billion, states N410.898 billion and local governments N261.481 billion. The N250 billion augmentation was split with N131.700 billion to the Federal Government, N66.800 billion to states and N51.500 billion to local councils. Compared to March, statutory revenue rose from N1.699 trillion to N2.378 trillion, while VAT collections increased from N664.425 billion to N806.617 billion. Revenue from CIT, import duties and oil and gas royalties improved, though receipts from Petroleum Profit Tax and Hydrocarbon Tax dropped.
The Federal Government took home more than half of the augmentation despite states and local councils receiving larger shares of the VAT pool. This distribution pattern gives the FG outsized control over additional funds while local governments, which rely heavily on federal allocations, get the smallest portion of the extra N250 billion. The rise in VAT and statutory revenue offers temporary fiscal relief, but the drop in oil-related taxes signals ongoing instability in a key income stream. Nigerians in oil-producing states continue to receive a fixed 13 per cent, regardless of how much the sector's overall contribution fluctuates.
Editorial note: AI-assisted opinion, not established fact. Full disclaimer →
