FG, States, LGs Allocate ₦1.89 Trillion Amid VAT Decline

The Federal Government, states, and local governments distributed a total of ₦1.89 trillion during a meeting of the Federal Account Allocation Committee (FAAC) held in Abuja on March 14, 2026. The total gross revenue available for February was ₦2.23 trillion, with statutory deductions made.

The Federal Government received ₦675.08 billion, states received ₦651.52 billion, and local governments received ₦456.46 billion. Additionally, ₦110.94 billion was allocated to oil-producing states as a 13% derivation from mineral resources.

The report indicated a significant drop in VAT revenue, which stood at ₦668.45 billion for February, down from ₦1.08 trillion in January, marking a reduction of ₦414.71 billion. The total statutory revenue for February was ₦1.27 trillion, with the Federal Government receiving ₦613.17 billion, states ₦311.01 billion, and local councils ₦239.77 billion.

The report also noted a decline in various revenue streams, including petroleum profit tax and company income tax, while import duties recorded a slight increase.