By Peace Erewunmi

The Federation Account Allocation Committee (FAAC) has shared a total of ₦2.26 trillion among the Federal Government, state governments, and local government councils following a significant increase in Value Added Tax (VAT) revenue.

The allocation was approved at the committee’s monthly meeting attended by representatives of the three tiers of government and other relevant agencies responsible for revenue management and distribution.

According to the communiqué issued after the meeting, the distributable revenue was drawn from statutory revenue, Value Added Tax (VAT), Electronic Money Transfer Levy (EMTL), and exchange difference earnings.

Officials noted that VAT revenue recorded a substantial increase compared to previous months, contributing significantly to the total amount available for distribution.

Under the approved sharing formula, the Federal Government, the 36 state governments, and the 774 local government councils received their respective allocations, while oil-producing states also received additional funds as derivation revenue in accordance with constitutional provisions.

Economic analysts say the increase in VAT collections reflects improved revenue performance and may provide additional fiscal support for government activities at all levels.

The FAAC distribution remains a critical source of funding for public services, infrastructure projects, salaries, and other developmental programmes across the country.

Stakeholders have continued to emphasize the importance of strengthening revenue generation and improving fiscal management to ensure sustainable economic growth and development.

As of the time of filing this report, government officials expressed optimism that continued improvements in revenue collection would enhance the capacity of the three tiers of government to meet their financial obligations and development goals.