The decision for this distribution was finalized during the monthly gathering of the Federation Account Allocation Committee (FAAC) held in May 2026 in the nation's capital, Abuja. The figures and breakdown were later made public through an official release detailing the outcomes of the meeting.
A closer look at the distributable revenue of N2.257 trillion reveals its composition from three primary streams. The largest portion was derived from statutory revenue sources, contributing N1.260 trillion. Following this was revenue generated from Value Added Tax (VAT), which accounted for N747.088 billion. To complete the pool, an additional augmentation fund of N250 billion was included, bringing the total to the stated figure.
The total revenue available for the month, before any deductions, stood at the impressive N3.184 trillion mark. From this gross sum, certain legally mandated deductions were made. A total of N113.756 billion was allocated to cover the cost of revenue collection by various agencies. Furthermore, a significant portion, N813.839 billion, was earmarked for specific purposes such as transfers, refunds, and savings, leaving the N2.257 trillion as the net amount for sharing among the governments.
The committee reported a marked upswing in revenue generation for April 2026. This positive performance was attributed to considerably stronger inflows from major tax and non-tax revenue sources. Specifically, the gross statutory revenue for April surged to N2.378 trillion. This represents a substantial increase of N678.224 billion when compared to the N1.699 trillion collected in the month of March 2026.
The VAT revenue stream also showed robust growth. Collections rose to N806.617 billion in April, reflecting an increase of N142.192 billion from the N664.425 billion recorded in the preceding month of March.
Regarding the final allocation from the N2.257 trillion distributable revenue, the Federal Government received the largest single share of N787.351 billion. The collective of state governments across the federation was allocated N772.360 billion. The 774 local government areas received a total of N540.152 billion for their administrative functions. Additionally, states designated as oil-producing areas shared a further N157.254 billion, which represents their 13 percent derivation revenue from natural resources.
Delving deeper into the statutory revenue component of N1.260 trillion, the breakdown shows the Federal Government was allotted N580.942 billion. The states received N294.661 billion from this pool, while the local government councils were allocated N227.172 billion. It is from this same statutory revenue component that the N157.254 billion derivation fund for oil-producing states was sourced.
Concerning the VAT pool of N747.088 billion, the distribution formula differs. The Federal Government received N74.709 billion, the state governments collectively got N410.898 billion, and the local governments were allotted N261.481 billion. The N250 billion augmentation fund was shared with the Federal Government receiving N131.700 billion, the states getting N66.800 billion, and the local governments receiving N51.500 billion.
The official statement highlighted that several revenue heads witnessed notable increases during April 2026. These included collections from Companies Income Tax (CIT), Capital Gains Tax (CGT), Stamp Duties, Import Duty, and Oil and Gas Royalties. VAT collections, as previously noted, also rose significantly. However, the month saw a pronounced decline in receipts from Petroleum Profit Tax (PPT) and Hydrocarbon Tax. Revenues from Excise Duty and the Common External Tariff (CET) also experienced slight decreases compared to previous periods. This mixed performance across different revenue streams underscores the dynamic nature of the national income profile. The substantial overall increase, however, provides enhanced fiscal space for the federal, state, and local governments to fund their respective budgets and development projects for the period.
