The Federal Government, the 36 states and 774 local government councils have shared N2.428 trillion from the Federation Account for September 2026, with stronger oil receipts offsetting a fall in Value Added Tax and several other tax lines. The figure, approved at the October meeting of the Federation Account Allocation Committee in Abuja, is N90 billion higher than the N2.338 trillion shared for August. Bawa Mokwa, Director of Press and Public Relations at the Office of the Accountant General of the Federation, disclosed the details in a statement on Thursday.
According to the FAAC communiqué, the distributable sum was made up of N1.672 trillion in statutory revenue and N756.587 billion from VAT. The Federal Government received N832.242 billion, states got N799.872 billion and local councils took N560.660 billion. Oil producing states shared a further N236.049 billion as 13 per cent derivation revenue.
The numbers show how much of the money raised never reaches the sharing table. Gross revenue for the month stood at N3.913 trillion, but N131.758 billion went on cost of collection, while N1.352 trillion was set aside for transfers, refunds and savings. That means roughly 38 per cent of everything collected in September was deducted before the three tiers of government received a kobo.
The month’s gains came almost entirely from oil and trade. FAAC said Petroleum Profit Tax, Hydrocarbon Tax, petroleum royalties, import duty, Common External Tariff levies and excise duty all rose significantly. Gross statutory revenue climbed to N3.096 trillion from N2.850 trillion in August, an increase of N246.384 billion or about 8.6 per cent.
The rise coincided with a period of elevated global crude prices, with Brent trading above $100 per barrel through much of September amid disruption to shipping around the Strait of Hormuz. Derivation revenue to oil producing states tells the same story. At N236.049 billion, it is about 75 per cent higher than the N134.956 billion those states shared for September 2025.
The non-oil side was weaker. FAAC listed Companies Income Tax, Capital Gains Tax, Stamp Duties, VAT, mineral royalties, gas flaring penalties and miscellaneous oil revenue among the streams that declined considerably. Gross VAT fell to N816.872 billion from N834.843 billion in August, a drop of N17.972 billion. The committee did not give reasons for the declines.
Compared with the same month last year, the slide in VAT is sharper. FAAC records show gross VAT for September 2025 was N872.630 billion, meaning this year’s figure is about 6.4 per cent lower. Over the same period, gross statutory revenue rose by about 45 per cent, from N2.128 trillion to N3.096 trillion, leaving the federation more dependent on oil linked receipts than it was a year ago.
Overall, the N2.428 trillion shared this month is about 15.5 per cent higher than the N2.103 trillion distributed for September 2025. That nominal growth sits close to the inflation rate, which the National Bureau of Statistics put at 15.39 per cent in August. In real terms, the purchasing power of what the three tiers received has therefore barely moved over the year.
The breakdown also reflects the new revenue sharing rules introduced under the Nigeria Tax Act, which took effect on January 1, 2026. Under the law, the Federal Government’s share of VAT dropped from 15 to 10 per cent, states rose from 50 to 55 per cent, while local councils kept 35 per cent. In September, the Federal Government received N75.659 billion from VAT, against N416.123 billion for states and N264.805 billion for councils.
That shift explains why the combined allocation to states, at N799.872 billion, now sits close to the Federal Government’s N832.242 billion. Statutory revenue continued to follow the existing vertical formula, with the Federal Government taking N756.583 billion, states N383.749 billion and councils N295.855 billion. Local councils, which receive the smallest share of statutory revenue, drew nearly half of their September allocation from VAT.
The figures arrive in the middle of a heated debate over fuel prices and public finances. The Federal Government has said it waived taxes and duties on petrol worth more than N3.3 trillion in the year to September 30, while the ruling party has warned that opposition proposals for preferential crude pricing to local refineries could reduce revenue accruing to the Federation. With oil now carrying a larger share of the distributable pool, any change in crude prices or petroleum policy would feed directly into what states and councils receive.
FAAC is expected to meet again in November to share October revenue. That allocation will show whether the strength in oil receipts holds and whether the decline in VAT and company taxes continues.