Nigeria’s Federation Account Allocation Committee (FAAC) for February 2026 recorded higher disbursement than in January, with total disbursements to the 36 states reaching N784.29 billion as net allocation.
The data according to the recently released FAAC allocation published by NBS usually prepared by the Office of the Accountant General of the Federation (OAGF), shows a combination of higher statutory inflows, VAT collections, and federal augmentations boosting allocations to states, with oil-producing and economically active states dominating the rankings.
Notably, the Electronic Money Transfer Levy (EMTL) was not included in the February 2026 FAAC disbursement because the revenue had not yet passed through the statutory reconciliation and remittance cycle required for FAAC sharing.
This, therefore, did not materially affect revenue performance, as unlike VAT or oil revenue, EMTL does not flow automatically into the Federation Account every month.
However, there was an additional “N100 billion non‑oil revenue augmentation” generated from non‑oil government revenue, such as taxes, customs duties, or recoveries to the FAAC allocation for the month of February 2026.
VAT remained the dominant driver of FAAC allocations, accounting for the largest share of distributable revenue to states.
This augmentation reflects stronger tax, customs, and other non‑oil revenue collections, improving distributable balances beyond baseline statutory inflows.
What the data is saying
The February 2026 FAAC data shows a notable increase in allocations compared to both the previous year and the preceding month, reflecting improved federally collected revenues, particularly from non-oil sources and VAT.
- Total net allocation to states rose to N784.29 billion, a 23.36% increase from N635.76 billion in February 2025
- On a month-on-month basis, allocations increased by 11.52% from N703.26 billion in January 2026, reinforcing the upward trend in FAAC disbursements.
- The top 10 states with the highest net FAAC allocation received a combined N370.66 billion, accounting for 47.26% of total allocations, highlighting a continued concentration of revenue among economically strategic and oil-producing states.
- From the augmentation of N100 billion from non-oil revenue, N7.75 billion accrued to the top 10 states, while N26 billion was distributed across all 36 states.
The data shows that while oil-producing states still dominate, non-oil economic activity is increasingly shaping allocation outcomes.
Top 10 States by Net FAAC Allocation – February 2026
Katsina State closed the Top‑10 FAAC ranking in tenth position in February 2026, receiving a net allocation of N18.49 billion.
Despite having no derivation entitlement, Katsina’s placement highlights the growing importance of VAT redistribution, population‑weighted statutory transfers, and non‑oil revenue augmentation in shaping FAAC outcomes for northern states.
On a year‑on‑year basis, Katsina State’s net FAAC allocation increased by 16.06%, from N15.93 billion in February 2025.
Compared with January 2026, Katsina’s net FAAC allocation declined slightly by 3.65%.
The states’ N18.49 billion net FAAC allocation was derived from the following components:
- 13% derivation (net): N0
- Net Statutory Allocation: N3.62 billion
- Non-oil revenue augmentation: N842.82 million
- Net VAT Allocation: N13.82 billion
- Total Gross Amount: N21.67 billion
