States share N784bn FAAC allocation in February, EMTL excluded

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 – N18.49 billion

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

Ondo State – N18.98 billion

Ondo State emerged as the ninth‑highest recipient of net FAAC allocation in February 2026, with a total receipt of N18.98 billion.

The state benefited from both derivation revenue as an oil‑producing state and VAT redistribution.

Ondo posted a 4.51% YoY increase from N18.16 billion in February 2025 and a 6.05% MoM increase in net FAAC allocation.

Ondo State’s N18.98 billion net FAAC allocation was derived from the following components:

• 13% derivation (net): N2.81 billion
• Net Statutory Allocation: N6.43 billion
• Non-oil revenue augmentation: N638.26 million
• Net VAT Allocation: N11.83 billion
• Total Gross Amount: N20.58 billion

Jigawa State – N19.66 billion

Jigawa State followed closely and ranked seventh among Nigeria’s 36 states in terms of net FAAC allocation in February 2026, receiving N19.66 billion.

The allocation highlights Jigawa’s dependence on VAT redistribution, statutory transfers, and non‑oil revenue augmentation, despite the absence of derivation revenue.

Jigawa State recorded a 28.73% YoY increase and a marginally 0.41% MoM increase in net FAAC allocation.

Jigawa’s N19.66 billion net FAAC allocation was composed mainly by VAT as the dominant revenue driver, supported by statutory allocation and incremental non‑oil augmentation

• 13% derivation (net): N0
• Net Statutory Allocation: N5.78 billion
• Non-oil revenue augmentation: N766.76 million
• Net VAT Allocation: N12.92 billion
• Total Gross Amount: N20.07 billion

Kano State – N25.71 billion

Kano State followed closely and ranked seventh among Nigeria’s 36 states in terms of net FAAC allocation in February 2026, receiving N25.71 billion.

This allocation reflects Kano’s large statutory allocation weight, sizable VAT inflows linked to population and commercial activity, and support from non‑oil revenue augmentation, despite the absence of oil‑derived revenues.

On a year‑on‑year basis, Kano State recorded a 19.05% increase in net FAAC allocation, from N21.59 billion recorded in the prior year.

Compared with January 2026, Kano’s allocation dipped slightly by 3.32%, easing from N26.59 billion to N25.71 billion.

Kano’s N25.71 billion net FAAC allocation was composed of the following key components:

• 13% derivation (net): N0
• Net Statutory Allocation: N6.98 billion
• Non-oil revenue augmentation: N1.09 billion
• Net VAT Allocation: N17.37 billion
• Total Gross Amount: N27.50 billion

Oyo State – N28.53 billion

Oyo State emerged as the sixth‑highest recipient of net FAAC allocation in February 2026, receiving N28.53 billion, supported significantly by VAT redistribution, statutory transfers and non‑oil revenue augmentation.

Oyo’s performance reflects the rising importance of non‑oil revenue channels in Nigeria’s fiscal federalism.

Oyo State posted the highest year-on-year growth of 68.03% among the top FAAC states, rising from N16.95 billion in February 2025 to N28.53 billion in February 2026.

Compared with January 2026, Oyo recorded a 34.77% MoM increase from N21.17 billion.

Oyo State’s N28.53 billion net FAAC allocation was composed of the following key components:

• 13% derivation (net): N0
• Net Statutory Allocation: N3.53 billion
• Non-oil revenue augmentation: N769.02 million
• Net VAT Allocation: N24.04 billion
• Total Gross Amount: N31.20 billion

Akwa Ibom State – N35.22billion

Akwa Ibom received N35.22 billion in net FAAC allocation in February 2026, ranking as the fifth‑largest beneficiary of federal revenue sharing, anchored by derivation inflows and supported by statutory and VAT allocations.

Akwa Ibom recorded a 7.20% YoY decline in net FAAC allocation, falling from N37.96 billion in February 2025 to N35.22 billion in February 2026 and a slight slip of 1.86% MoM from N35.89 billion in January 2026.

Akwa Ibom’s N35.22 billion net FAAC receipt was driven by the following components:

• 13% derivation (net): N18.41 billion
• Net Statutory Allocation: N22.50 billion
• Non-oil revenue augmentation: N689.35 million
• Net VAT Allocation: N11.95 billion
• Total Gross Amount: N36.78 billion

Rivers State – N38.78 billion 

Rivers State placed fourth nationally in net FAAC allocation in February 2026, receiving N38.78 billion, cementing its role as one of Nigeria’s most strategically important oil‑producing and consumption‑linked states within the federal revenue sharing framework. This is driven by strong VAT inflows and bolstered by derivation and statutory transfers.

Rivers State recorded a 16.18% year-on-year decline in net FAAC allocation, falling from N46.27 billion in February 2025, and a 10.53% MoM increase from N35.09 billion in the previous month.

Rivers State’s N38.78 billion net FAAC allocation was composed of the following elements:

• 13% derivation (net): N13.42 billion
• Net Statutory Allocation: N14.38 billion
• Non-oil revenue augmentation: N739.44 million
• Net VAT Allocation: N23.57 billion
• Total Gross Amount: N43.87 billion

Bayelsa State – N39.86 billion

Bayelsa State received N39.86 billion in net FAAC allocation in February 2026, reflecting its standing as one of the most fiscally advantaged oil‑producing states under Nigeria’s revenue-sharing framework.

On a year‑on‑year basis, Bayelsa’s net FAAC allocation increased by 3.19%, from N38.63 billion in February 2025.

Compared with January 2026, Bayelsa’s net FAAC allocation surged by 13.12%, rising from N35.24 billion.

Standing in the third position, Bayelsa’s N39.86 billion net allocation was anchored by significant derivation inflows and reinforced by statutory and VAT allocations:

• 13% derivation (net): N19.94 billion
• Net Statutory Allocation: N24.10 billion
• Non-oil revenue augmentation: N606.67 million
• Net VAT Allocation: N15.07 billion
• Total Gross Amount: N40.66 billion

Delta State – N45.44 billion

Delta State emerged as the second-highest recipient of net FAAC allocation in February 2026, receiving N45.44 billion, one of Nigeria’s most fiscally advantaged subnational governments.

Delta’s net FAAC allocation declined on a year‑on‑year basis by 5.36% from N48.02 billion in February 2025 and a 3.63% slip from N47.15 billion in January 2026.

Delta’s N45.44 billion net allocation was driven primarily by derivation inflows and reinforced by statutory and VAT allocations:

• 13% derivation (net): N29.09 billion
• Net Statutory Allocation: N31.77 billion
• Non-oil revenue augmentation: N696.17 million
• Net VAT Allocation: N12.89 billion
• Total Gross Amount: N48.47 billion

Lagos State – N99.98 billion 

Lagos State emerged as the single largest recipient of Federation Accounts Allocation Committee (FAAC) transfers in February 2026, receiving a net allocation of N99.98 billion, far ahead of every other state.

The figure illustrates Lagos’ structural dominance within Nigeria’s states’ fiscal framework, driven not by oil derivation, but by its outsized influence on non‑oil revenue distribution, particularly VAT, and statutory allocation weights.

Lagos alone received 12.75% of total net allocations to the 36 states in February 2026.

The state net FAAC rose significantly by 121.46% YoY, and 79.09% MoM from N45.15 billion in February 2025 and N55.83 billion in January 2025.

• Net Statutory Allocation: (N2.50 billion)

• Non-oil revenue augmentation: N918.51 million

• Net VAT Allocation: N101.34 billion
• Total Gross Amount: N119.78 billion

What you should know 

FAAC allocations remain a critical source of revenue for Nigerian states, with distribution influenced by derivation, VAT, statutory allocation, and federal augmentations. The February figures reinforce the importance of both oil revenues and internally driven economic activity.

• Oil-producing states benefit from the 13% derivation principle, which significantly boosts their share of FAAC allocations.
• The N100 billion augmentation from non-oil revenue contributed to the distributable pool for February 2026.
• VAT is emerging as a major revenue driver, especially for states with large populations and strong consumption bases.
• Northern states such as Kano, Jigawa, and Katsina continue to rely heavily on statutory allocations for fiscal stability.

Overall, the February 2026 FAAC distribution highlights a dual-track revenue structure where oil income remains dominant, but non-oil sources like VAT are gaining increasing relevance in shaping state allocations.