The 36 states and 774 local government areas of the Federation received a combined N1.36 trillion, representing 56.1 per cent of the N2.428 trillion shared from the Federation Account in September 2026, as deductions, transfers and savings significantly reduced the gross revenue available for distribution.

The 36 states received N799.872 billion, while local government councils got N560.660 billion, according to a communiqué issued after the October meeting of the Federation Account Allocation Committee (FAAC) in Abuja.

The Federal Government received N832.242 billion, while oil-producing states shared an additional N236.049 billion as their 13 per cent derivation revenue.

The total distributable revenue comprised N1.672 trillion from statutory revenue and N756.587 billion from Value Added Tax (VAT).

However, the N2.428 trillion shared among the three tiers of government was substantially lower than the N3.913 trillion gross revenue available for distribution in September.

The communiqué showed that N131.758 billion was deducted as collection costs, while transfers, refunds and savings amounted to N1.352 trillion, leaving the balance available for distribution.

A breakdown of the revenue sources showed that gross statutory revenue rose to N3.096 trillion in September, representing an increase of N246.384 billion from the N2.850 trillion recorded in August.

In contrast, gross VAT revenue fell to N816.872 billion from N834.843 billion in the preceding month, representing a decline of N17.972 billion.

Of the N1.672 trillion distributable statutory revenue, the Federal Government received N756.583 billion, while the state governments got N383.749 billion.

Local government councils received N295.855 billion, while oil-producing states shared N236.049 billion as derivation revenue.

Under the VAT-sharing arrangement, the Federal Government received N75.659 billion, the states got N416.123 billion, and local government councils received N264.805 billion.

The communiqué further revealed mixed performances across major revenue sources during the period.

Receipts from Petroleum Profit Tax, Hydrocarbon Tax, petroleum royalties, import duty, Common External Tariff levies and excise duty recorded significant increases.

However, revenue from Companies Income Tax, Capital Gains Tax, Stamp Duties, VAT, mineral royalties, gas-flaring penalties, gas-flaring fees and miscellaneous oil revenue declined considerably.