Nigeria’s Federation Account Allocation Committee (FAAC) disbursed a total of N784.29 billion to the 36 states in February 2026, marking an increase from the previous month’s allocation. This data, published by the National Bureau of Statistics (NBS) and prepared by the Office of the Accountant General of the Federation (OAGF), indicates a positive trend in federally collected revenue. The rise was driven by a combination of higher statutory inflows, increased Value Added Tax (VAT) collections, and federal augmentations.
VAT remained the dominant driver of distributable revenue for states. The February allocation was further bolstered by an additional N100 billion non-oil revenue augmentation, drawn from sources such as taxes, customs duties, and recoveries. This reflects stronger non-oil revenue collections, which are increasingly shaping allocation outcomes alongside traditional oil revenue. While oil-producing states continue to receive significant shares, the growing influence of non-oil economic activity is evident in the distribution rankings.
Notably, the Electronic Money Transfer Levy (EMTL) was excluded from the February 2026 FAAC disbursement. This omission occurred because the revenue had not yet completed the statutory reconciliation and remittance cycle required for FAAC sharing. However, this did not materially affect overall revenue performance for the month, as EMTL, unlike VAT or oil revenue, does not flow automatically into the Federation Account on a monthly basis.
Katsina State’s position in the Top 10 FAAC ranking for February 2026 illustrates these shifting dynamics. Despite having no derivation entitlement from oil, Katsina secured the tenth position with a net allocation of N18.49 billion. This placement underscores the growing importance of VAT redistribution, population-weighted statutory transfers, and non-oil revenue augmentation in determining allocations, particularly for northern states. On a year-on-year basis, Katsina’s allocation saw a 16.06% increase from February 2025, though it experienced a slight decline of 3.65% compared to January 2026.
The overall increase in FAAC allocations for February 2026, compared to both the preceding month and the previous year, points to improved revenue generation. This performance is crucial for funding state-level projects and operations. The consistent tracking of such financial data, much like monitoring the Nasd market value or the global price of Ivory Coast cocoa, provides vital insights into economic health. Effective revenue allocation supports public institutions, from universities to entities like Bauchi Federal Poly, and aids in maintaining infrastructure, which ranks among a government’s top 10 assets. Furthermore, these funds are essential for supporting security forces tasked with maintaining stability.
