State governments received N2.37tn from Value Added Tax revenue generated in the first half of 2026, representing an increase of N451.25bn compared with the corresponding period of 2025, an analysis by The PUNCH has shown.
The figure indicates that states’ VAT allocation rose by 23.48 per cent from N1.92tn in the first six months of 2025, according to Federation Account Allocation Committee reports and data from the National Bureau of Statistics and the Office of the Accountant General of the Federation collated by The PUNCH on Sunday.
The analysis covered VAT generated from January to June 2026, although the proceeds were distributed at FAAC meetings held between February and July. Under the FAAC arrangement, revenue earned in a particular month is shared among the three tiers of government in the following month.
This means that January revenue was distributed in February, while June revenue was shared in July. A total of N4.31tn in distributable VAT revenue was shared among the Federal Government, states and local government councils during the first half of 2026. This was N471.07bn, or 12.26 per cent, higher than the N3.84tn distributed in the corresponding period of 2025.
