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  • States Receive Nearly Three Times More FAAC Allocations Under Tinubu Reforms

    Nigerian states received significantly higher allocations from the Federation Account Allocation Committee (FAAC) in April 2026 compared to the period shortly after President Bola Ahmed Tinubu assumed office, according to official figures highlighted by the President Bola Ahmed Tinubu Media Centre.

    The data shows that state governments collectively received about ₦772 billion in April 2026, compared to approximately ₦266 billion shared in May 2023, reflecting a sharp rise in federation account revenues following major economic reforms introduced by the current administration.

    FAAC Allocations Rise Across States

    Several states recorded substantial increases in their monthly allocations during the period under review.

    Lagos State’s allocation increased from ₦11.5 billion in May 2023 to ₦40.5 billion in April 2026, while Abia State’s share rose from ₦6.25 billion to ₦16.1 billion.

    Oil-producing states, including Rivers and Delta, also recorded notable increases as higher oil revenues boosted overall federation earnings.

    For April 2026, FAAC distributed a total of about ₦2.257 trillion to the three tiers of government. The Federal Government received ₦787.351 billion, state governments received ₦772.360 billion, while local governments got ₦540.152 billion. An additional ₦157.254 billion was paid as 13 per cent derivation to oil-producing states.

    Tinubu Reforms Linked to Revenue Growth

    The increase in allocations has been linked to key economic reforms introduced by the Tinubu administration shortly after taking office in 2023.

    These include the removal of fuel subsidies, the unification of exchange rates that led to naira devaluation, and improved tax and VAT collections.

    Supporters of the reforms argue that the policies have strengthened federation revenues, increased foreign reserves, and pushed monthly FAAC distributions to levels ranging between ₦1.8 trillion and ₦2.6 trillion in recent periods.

    Concerns Over Inflation and Purchasing Power

    Despite the rise in nominal allocations, critics have argued that inflation has significantly reduced the real value of the funds received by states.

    They note that cumulative inflation since mid-2023 has exceeded 100 per cent, while the depreciation of the naira has reduced the dollar value of some state allocations.

    Some analysts contend that although states now receive more money in naira terms, many Nigerians have yet to see corresponding improvements in public infrastructure, healthcare, education, or salary payments.

    Calls for Greater Accountability

    The increase in FAAC allocations has renewed calls for greater accountability at the state level.

    Supporters of the administration maintain that governors now have more resources to deliver development projects and improve public services, while critics insist that citizens deserve clearer evidence of how the additional revenues are being spent.

    The debate continues as Nigeria balances higher government revenues with ongoing challenges such as inflation, unemployment, and rising living costs.

  • FAAC Shares N2.036trn March Revenue Amid Mixed Oil, Tax Returns

    The Federation Account Allocation Committee (FAAC) has shared N2.036 trillion among the three tiers of government for March 2026, reflecting a mix of rising tax revenues and declining oil-related earnings.

    How the funds were shared

    The allocation was finalised in Abuja during FAAC’s monthly meeting chaired by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele.

    According to a communiqué issued after the meeting, the federal government received N789.159 billion, states got N657.596 billion, while local government councils were allocated N468.826 billion.

    Oil-producing states also received N120.759 billion as 13 per cent derivation revenue.

    Breakdown of revenue sources

    The distributable sum of N2.036 trillion was drawn from a gross revenue of N2.364 trillion.

    This included N1.320 trillion from statutory revenue, N515.391 billion from Value Added Tax (VAT), and an augmentation of N200 billion.

    From statutory revenue alone, the federal government received N632.260 billion, states got N320.691 billion, while local governments received N247.239 billion.

    VAT distribution details

    Out of the N515.391 billion VAT pool, the federal government received N51.539 billion, states were allocated N283.465 billion, and local governments got N180.387 billion.

    Revenue performance shows mixed trends

    The communiqué revealed that gross statutory revenue rose to N1.699 trillion in March, an increase of N137.914 billion compared to February’s N1.561 trillion.

    However, VAT revenue dipped slightly to N664.425 billion, down by N4.025 billion from the previous month.

    From the total revenue, N81.084 billion was deducted as cost of collection, while N246.872 billion was set aside for transfers, refunds, and savings.

    Taxes rise, oil earnings fall

    In terms of performance, Companies Income Tax (CIT), Capital Gains Tax (CGT), Stamp Duties, and Excise Duties recorded notable increases.

    On the other hand, Petroleum Profit Tax (PPT), Hydrocarbon Tax, Oil and Gas Royalties, Import Duty, and Common External Tariff (CET) declined. VAT collections also recorded a slight drop.

    The latest FAAC allocation highlights ongoing shifts in Nigeria’s revenue structure, with stronger tax contributions offsetting weaker oil inflows, a trend that continues to shape latest Nigerian news and breaking news Nigeria today.