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From Adanna Nnamani, Abuja
The federal government, 36 states and the 774 local government councils shared N2.257 trillion from the Federation Account in April 2026.
The figure reflects improved government earnings driven by stronger tax collections and increased oil and gas royalty receipts. The revenue allocation was approved at the May 2026 meeting of the Federation Account Allocation Committee (FAAC) held in Abuja.
A communiqué issued after the meeting showed that the distributable revenue consisted of N1.260 trillion in statutory revenue, N747.088 billion from Value Added Tax (VAT), and an augmentation of N250 billion.
The latest allocation is one of the highest monthly distributions recorded by the Federation Account, highlighting the growing contribution of tax revenues to government finances amid ongoing efforts to strengthen non-oil revenue generation.
According to FAAC, gross revenue of N3.184 trillion was available in April 2026. However, N113.756 billion was deducted as cost of collection, while N813.839 billion was earmarked for transfers, interventions, refunds and savings, leaving N2.257 trillion available for distribution among the three tiers of government.
A breakdown of the allocation showed that the Federal Government received N787.351 billion, while state governments collectively received N772.360 billion.
The 774 local government councils received N540.152 billion, while the oil-producing states shared N157.254 billion as 13 per cent derivation revenue in line with constitutional provisions.
Further details revealed that from the N1.260 trillion statutory revenue, the Federal Government received N580.942 billion. The states received N294.661 billion, while local governments got N227.172 billion. The oil-producing states received N157.254 billion from the statutory revenue component as derivation revenue.
From the N747.088 billion distributable VAT pool, the Federal Government received N74.709 billion, while the states received N410.898 billion. Local government councils shared N261.481 billion.
The N250 billion augmentation was also shared among the three tiers of government, with the Federal Government receiving N131.700 billion, states receiving N66.800 billion, and local governments getting N51.500 billion.
The latest FAAC figures point to a significant increase in government revenue compared to the previous month.
According to the committee, gross statutory revenue rose to N2.378 trillion in April from N1.699 trillion recorded in March, representing an increase of N678.224 billion.
VAT collections also posted a strong performance during the period, rising from N664.425 billion in March to N806.617 billion in April. This represented an increase of N142.192 billion, underscoring the growing role of consumption taxes in government revenue generation.
The committee attributed the improved revenue performance to higher collections from several key revenue sources.
According to the communiqué, Companies Income Tax (CIT), Capital Gains Tax (CGT), Stamp Duties, Import Duty, Oil and Gas Royalty, and VAT all recorded notable increases during the month under review.
The growth in Companies Income Tax and VAT collections is seen as a reflection of increased economic activities and improved tax administration efforts by revenue agencies.
However, not all revenue sources recorded gains.
FAAC noted that receipts from Petroleum Profit Tax (PPT) and Hydrocarbon Tax (HT) declined considerably during the period. Excise Duty and Common External Tariff (CET) Levies also recorded slight decreases.
Despite these declines, the strong performance of other revenue streams more than compensated for the shortfall, resulting in the overall increase in distributable revenue.
Economic analysts say the steady rise in revenue allocations is a positive development for governments at all levels, particularly as many states continue to face growing expenditure demands in areas such as infrastructure, healthcare, education and public sector wages.
The improved revenue profile is also expected to provide additional fiscal support for ongoing economic reforms and development programmes across the country.
The latest FAAC distribution further highlights the increasing importance of non-oil tax revenues in Nigeria’s fiscal framework, as authorities continue efforts to reduce reliance on crude oil earnings and broaden the government’s revenue base.
With both statutory revenue and VAT collections showing strong growth, stakeholders will be watching closely to see whether the positive trend can be sustained in the coming months amid global oil market uncertainties and domestic economic challenges.
