Strong Tax, Oil Royalty Inflows Lift April FAAC Allocation to N2.257 Trillion

Higher VAT, import duties and company tax revenues drive N217 billion increase in distributable funds.

Strong inflows from Companies Income Tax (CIT), import duties, and Value Added Tax (VAT) raised allocations to the three tiers of government for April to N2.257 trillion, a N217 billion increase over the N2.04 trillion disbursed by the Federation Account Allocation Committee (FAAC) in the preceding month.

This was revealed at the delayed monthly FAAC meeting for May which was held in Abuja on Monday.

The amount shared was from a gross revenue of N3.184 trillion garnered in the reference month.

Citing a communique issued at the end of the meeting, the Director of Press and Public Relations, Office of the Accountant-General of the Federation (OAGF), Bawa Mokwa, disclosed that a total of N2.257 trillion was distributed from the April 2026 Federation Account revenue, to the federal, state and local governments.

While Petroleum Profit Tax (PPT) and Hydrocarbon Tax recorded significant declines during the month, stronger inflows from CIT import duties, VAT and oil and gas royalties made up for the losses and raised the distributable pool available for disbursement to the relevant tiers.

According to the communique, the N2.257 trillion distributable revenue comprised N1.260 trillion statutory revenue, N747.088 billion VAT revenue and N250 billion Augmentation.

It emerged that from the gross revenue of N3.184 trillion available in April, N113.756 billion was deducted as cost of collection, while N813.839 billion went for transfers, refunds and savings.

The communique revealed that gross statutory revenue rose to N2.378 trillion in April, from N1.699 trillion in March, representing an increase of N678.224 billion.

Also, gross VAT revenue increased to N806.617 billion in April from N664.425 billion during the preceding month of March, signalling a N142.192bn surge.

According to the communique, the higher revenue performance stemmed from improved collections from several major tax and non-tax revenue sources.

The federal government received the sum of N787.351billion from the N2.257 trillion distributable revenue available for the reference month while states received N772.360 billion.

The 774 local government councils received N540.152 billion, while oil-producing states shared N157.25 billion as 13 per cent derivation revenue.

Equally, from the N1.26 trillion statutory revenue, the federal government received N580.942 billion, states got N294.661 billion and local governments got N227.172bn.

Under the derivation principle, the oil-producing states also received N157.254 billion as derivation revenue from the statutory component.

For the VAAT revenue, the federal government received N74.709 billion, states got N410.898 billion, while local governments received N261.481 billion.

Also, the federal government received N131.700 billion from the N250 billion Augmentation, states received N66.800 billion and local governments got N51.500 billion.

The communique said, “In April 2026, CIT, CGT, SDT, Import Duty, Oil and Gas Royalty and Value Added Tax increased significantly while Petroleum Profit Tax and Hydrocarbon Tax decreased considerably. Excise Duty and CET Levies decreased marginally.”