FAAC Shares N2.257tr April Revenue to Three Tiers
By Patience Ikpeme
The Federation Account Allocation Committee (FAAC) distributed a total of N2.257 trillion in revenue generated in April 2026 to the three tiers of government, signaling a significant jump in key national revenue streams.
The distribution, which took place during the committee’s May meeting in the Federal Capital Territory, reflects a sharp increase in collections across major tax categories, including Companies Income Tax, Value Added Tax, and oil and gas royalties.
According to the official communiqué issued at the end of the session, the N2.257 trillion total distributable fund consists of N1.260 trillion in statutory revenue, N747.088 billion from the Value Added Tax (VAT), and an augmentation of N250.000 billion.
The figures released by the committee showed that the gross inflows into the federation’s coffers for the month stood well above the distributed amount.
“A total gross revenue of N3.184 trillion was available in the month of April 2026,” the FAAC communiqué noted, explaining that mandatory deductions accounted for the difference. “Total deduction for cost of collection was N113.756 billion while total transfers, refunds and savings was N813.839 billion.”
A breakdown of the distributions showed that the Federal Government received N787.351 billion, the State Governments took home N772.360 billion, and the Local Government Councils secured N540.152 billion. Additionally, the sum of N157.254 billion was shared to oil-producing and mineral-rich states as their 13% derivation revenue.
The spike in revenue was driven largely by strong performances in statutory collections and consumption taxes. Gross statutory revenue for April climbed to N2.378 trillion, representing a substantial gain over the N1.699 trillion recorded in March 2026, marking an increase of N678.224 billion.
Similarly, VAT collections maintained an upward trajectory. The gross revenue available from VAT reached N806.617 billion in April, beating the N664.425 billion recorded the previous month by N142.192 billion.
From the specific N1.260 trillion chunk of distributable statutory revenue, the committee stated that “the Federal Government received N580.942 billion and the State Governments received N294.661 billion.” The balance was split between the Local Government Councils, which received N227.172 billion, and the benefiting states, which received the N157.254 billion derivation share.
For the N747.088 billion distributable VAT pool, the formula favored the states and local councils. The Federal Government received N74.709 billion, the State Governments were allocated N410.898 billion, while the Local Government Councils walked away with N261.481 billion.
The final component of the month’s sharing, the N250.000 billion augmentation, saw the Federal Government receive N131.700 billion, the State Governments receive N66.800 billion, and the Local Governments take N51.500 billion.
Reviewing the economic drivers behind the numbers, the committee pointed out that Companies Income Tax (CIT), Capital Gains Tax (CGT), Stamp Duty (SDT), Import Duty, Oil and Gas Royalty, and VAT all increased significantly during the period under review. Conversely, the Petroleum Profit Tax (PPT) and Hydrocarbon Tax (HT) experienced considerable decreases, while Excise Duty and Common External Tariff (CET) Levies dropped marginally.
