Manny Ita –
The Federation Account Allocation Committee (FAAC) has distributed a total of ₦1.894 trillion generated as revenue in February 2026 to the three tiers of government, including the Federal Government, the 36 states and the 774 local government councils.
The disbursement was confirmed at the monthly FAAC meeting attended by representatives of the federal, state and local governments as well as revenue-generating agencies. The funds shared were drawn from statutory revenue, Value Added Tax (VAT), Electronic Money Transfer Levy (EMTL) and exchange difference revenue.
A communiqué issued at the end of the meeting indicated that the Federal Government received the largest share of the allocation, followed by the state governments and the local government councils in line with the existing revenue-sharing formula. Oil-producing states also received additional allocations as derivation revenue from crude oil and gas earnings.
Officials said the February allocation reflected revenue inflows from petroleum profit tax, company income tax, VAT and customs duties collected during the period under review.
A member of the committee said the distribution was aimed at ensuring that governments at all levels meet their financial obligations, including salary payments, infrastructure development and other public services.
“The allocation provides the necessary fiscal support for the three tiers of government to carry out their responsibilities,” the official said. “However, prudent management of the resources remains essential in the face of current economic uncertainties.”
Economic analysts have noted that the distribution comes at a time when Nigeria’s economy continues to face pressure from global developments, particularly tensions in the Middle East which have contributed to volatility in energy markets.
According to analysts, fluctuations in global crude oil prices could influence Nigeria’s revenue inflows and potentially affect the stability of allocations in the coming months.
A financial analyst who spoke on the development said global geopolitical tensions could also have indirect implications for domestic inflation and consumer purchasing power.
“Any sustained disruption in global oil supply chains or escalation of geopolitical conflicts tends to influence energy prices and exchange rates,” the analyst said. “For an import-dependent economy like Nigeria, that can translate into higher inflation and reduced purchasing power for households.”
The analyst added that while higher oil prices could increase government revenues in the short term, the broader economic impact may still pose challenges for fiscal planning.
FAAC allocations represent the primary source of revenue for many state and local governments in Nigeria, making the monthly distribution a critical component of public sector financing across the country.
Observers have continued to stress the need for greater diversification of revenue sources and improved fiscal discipline to reduce dependence on volatile oil earnings and ensure long-term economic stability.
