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.
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%.
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.
The monthly breakdown shows how Federation Account revenue was distributed among the three tiers of government during the eight-month period.
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 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.
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.
