The Federal Government, state governments and local government councils received a combined N17.12 trillion in Federation Account allocations between January and August 2026, with the Federal Government accounting for the largest share of N6.53 trillion.
State governments received N6.21 trillion, while local government councils received N4.38 trillion over the eight-month period.
This is according to Nairametrics analysis of monthly Federation Account Allocation Committee (FAAC) reports released by the Office of the Accountant-General of the Federation between January and August 2026.
The disbursements covered revenue generated between December 2025 and July 2026, with each monthly allocation reflecting collections from the preceding month.
How FAAC allocations were shared
The Federal Government accounted for 38.2% of the N17.12 trillion distributed during the period, while states received 36.2% and local government councils accounted for the remaining 25.6%.
- August recorded the highest combined allocation at N2.76 trillion, covering revenue generated in July 2026. The Federal Government received N1.15 trillion, states got N943.35 billion, while local government councils received N673.65 billion.
- The July disbursement ranked second, with the three tiers sharing N2.60 trillion from June revenue. The Federal Government received N1.06 trillion, state governments got N905.01 billion, and local government councils received N642.89 billion.
- At the other end, March recorded the lowest combined disbursement of N1.78 trillion, covering February revenue. The Federal Government received N675.09 billion, states got N651.53 billion, while local government councils received N456.47 billion.
The upward movement in allocations became more pronounced from May, when combined disbursements reached N2.10 trillion, rising to N2.11 trillion in June, N2.60 trillion in July and N2.76 trillion in August.
The Federal Government’s monthly receipts also crossed N1 trillion in July for the first time during the period, increasing further in August.
Monthly FAAC allocations to FG, states and LGAs
The monthly breakdown shows how Federation Account revenue was distributed among the three tiers of government during the eight-month period.
Delta replaces Lagos as largest FAAC recipient in Q2 2026
- At the state level, Delta emerged as the largest recipient of FAAC allocations in the second quarter of 2026, replacing Lagos, according to a separate Nairametrics analysis.
- Nigeria’s 36 states received a combined N2.39 trillion from the Federation Account in Q2 2026, representing an increase of N259.41 billion, or 12.2%, from the N2.13 trillion received in Q1 2026.
Delta recorded an increase of N44.59 billion, or 31.1%, in its allocation, rising from N143.42 billion in Q1 to N188.01 billion in Q2.
- The state received N53.77 billion in April, N67.81 billion in May and N66.44 billion in June.
- Rivers recorded an even larger absolute increase of N48.07 billion, or 38.8%, with its allocation rising from N123.96 billion in Q1 to N172.03 billion in Q2.
- Lagos, however, retained its position as the largest recipient of VAT revenue in Q2, receiving N150.56 billion. Rivers followed with N75.81 billion, while Oyo received N44.29 billion.
- Kano received N34.17 billion, compared with N29.61 billion for Delta.
The figures illustrate the differences between overall FAAC allocations and VAT distributions, with the latter reflecting a separate revenue-sharing component.
Based on the Q1 and Q2 comparisons, Lagos was the only state to record a decline in total FAAC receipts between the two quarters.
Oil revenues and FAAC allocations
The increase in Federation Account distributions comes against the backdrop of Nigeria’s continued dependence on oil-related revenue, despite efforts to diversify government earnings.
The Federal Government has also highlighted the fiscal savings from the removal of petrol subsidies as a major source of relief for public finances.
President Bola Tinubu has similarly argued that subsidy removal saved Nigeria from imminent bankruptcy and created room for economic recovery.
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