FAAC Distributes N2.428tn for September as Oil Revenue Strengthens

Nigeria's three tiers of government received a combined N2.428 trillion in allocations during October, representing revenue collected in September 2026. The amount marked a N90 billion increase compared to the N2.338 trillion distributed the previous month.

The Federation Account Allocation Committee announced the disbursement following its October meeting in Abuja. The increase in total allocation came despite mixed performance across revenue sources.

Petroleum-related income, including taxes, royalties, and import duties, grew and drove the overall gain. However, collections from Value Added Tax declined during the period, alongside reductions in Company Income Tax, Capital Gains Tax, and Stamp Duties.

The statutory revenue component totalled N1.672 trillion of the overall N2.428 trillion shared. The federal government received N832.242 billion from the September allocation.

State governments and local government councils collectively claimed the remainder, with one source indicating states and councils together received N1.36 trillion. The total federation revenue for September reached N3.913 trillion across all revenue streams.

The allocation surge reflects a recovery in oil sector contributions, a critical revenue pillar for Nigeria's national budget. The month-on-month growth, though modest at 3.85 percent, signals improved performance in petroleum collections after earlier volatility.

Declines in non-oil tax revenues suggest mixed economic activity across the private sector during the period.