Report: FAAC Recorded N18.72tn Gross Revenue, Disbursed N12.59tn in Half-year 2026

Nigeria's Federation Account Allocation Committee (FAAC) generated a gross revenue of N18.72 trillion in the first half of 2026, according to a report by Agora Policy. During this period, N12.59 trillion was disbursed to the federal, state, and local governments, representing 67% of the total revenue. The remaining N6.13 trillion, or 33%, was allocated to savings, interventions, refunds, transfers, and collection costs.

The report indicates a year-on-year increase in distributable revenue, rising by 24.4% from N10.12 trillion in the first half of 2025 to N12.59 trillion in the first half of 2026. Concurrently, FAAC deductions decreased by 16%, falling from N7.30 trillion in H1 2025 to N6.13 trillion in H1 2026. Statutory revenue remained the primary source of FAAC receipts, contributing N13.95 trillion (75% of gross revenue), while Value Added Tax (VAT) accounted for N4.77 trillion (25%).

Of the N12.59 trillion distributed in H1 2026, the federal government received N4.57 trillion, the 36 states collectively received N4.47 trillion, and the 774 local government councils received N3.13 trillion. Oil-producing states received N864.89 billion as derivation allocation, which is 13% of the distributable revenue. Notably, the distribution shifted in favor of the federal government in H1 2026, reversing the trend from H1 2025 when states collectively received a slightly larger share.

Savings and interventions constituted the largest portion of the N6.13 trillion in deductions, amounting to N2.30 trillion and N2.14 trillion, respectively. Refunds totaled N714.51 billion, and the cost of collection was N665.48 billion. Transfers represented the smallest deduction at N311.84 billion. The report also highlighted a significant increase in gross FAAC revenue by 323% between the first half of 2021 and the first half of 2026, rising from N4.43 trillion.