FACC Disburses N2.428tn September Allocations as Federation Revenue Grosses N3.913tn

• Inflation drops to 14.63% amid moderation in food index 

•Severe in Imo, Enugu, Niger

Ndubuisi Francis and James Emejo in Abuja

The Federation Account Allocation Committee (FAAC) has disbursed a total of N2.428 trillion to the federal, state, and local governments, as Federation Revenue grossed N3.913 trillion for the month of September 2026.

FAAC shared the amount during its October meeting in Abuja, yesterday, Director of Press and Public Relations, Office of the Accountant-General of the Federation (OAGF), Bawa Mokwa, said in a statement.

The N2.428 trillion September allocations surpassed the sum of N2.338 trillion shared in the preceding month of August by N90 billion.

That was the Consumer Price Index (CPI), which measures the rate of change in prices of good and commodities, declined to 14.63 per cent in September, from 15.39 per cent in August, National Bureau of Statistics (NBS) said yesterday.

The drop was occasioned by falling food prices, which helped to moderate the cost of living, although underlying price pressures showed signs of renewed strength.

According to the CPI report for the month under review, headline inflation rate fell by 6.35 percentage points, from 20.98 per cent recorded in the corresponding period of 2025.

However, the relief remained uneven, with the core inflation rate, which excludes farm produce and energy, rising on a month-on-month basis, while urban inflation also accelerated during the review period.

Citing the communique issued at the meeting, Mokwa said from the N2.428 trillion distributable revenue, the federal government received N832.242 billion, state governments received N799.872 billion, while local government councils got N560.660 billion.

The sum of N236.049 billion went to oil mineral producing states as 13 per cent derivation revenue.

The N2.428 trillion total distributable revenue for September comprised a distributable statutory revenue of N1.672 trillion and distributable Value Added Tax (VAT) revenue of N756.587 billion.

Although gross revenue was N3.913 trillion in the month of September, total deductions for cost of collection stood at N131.758 billion, while total transfers, refunds, and savings accounted for N1.352 trillion.

According to the communique, gross statutory revenue of N3.096 trillion was received for the month of September 2026, an amount higher than the sum of N2.850 trillion received in the preceding month by N246.384 billion.

Value Added Tax (VAT) also posted a gross revenue of N816.872 billion in September, N17.972 billion, an amount less than the N834.843 billion recorded in the month of August 2026.

However, from the N816.872 billion gross VAT revenue, distributable VAT revenue was N756.587 billion from which the federal government received N75.659 billion, state governments got N416.123 billion, and local government councils received N264.805 billion.

According to the figures, state and local government councils received larger shares of distributable VAT revenue, while the federal government got a smaller share.

The communiqué also showed that gross statutory revenue rose in September, while VAT revenue declined during the period.

It equally emerged that gross statutory revenue stood at N3.096 trillion in September, up from N2.850 trillion in August, the N246.384 billion rise reflecting higher revenue available from statutory sources.

Overall, FAAC attributed the changes in revenue performance to increases in some tax and petroleum-related revenue sources, alongside declines in others.

Petroleum Profit Tax (PPT), Hydrocarbon Tax, petroleum royalties, import duty, Common External Tariff (CET) levies and excise duty recorded significant increases in September.

But Companies Income Tax (CIT), Capital Gains Tax (CGT), Stamp Duties Tax (SDT), VAT, mineral royalties, gas-flaring penalties, rental gas-flaring fees and miscellaneous oil revenue declined during the period.

Meanwhile, the CPI increased marginally to 146.38 points in September from 146.30 points in August, indicating that the overall price level continued to edge upwards, despite the slower annual inflation rate.

Month-on-month, headline inflation declined sharply to 0.06 per cent in September, compared with 0.71 per cent in August, NBS stated.

Average prices continued to increase, but at a substantially slower pace than in the preceding month.

Food prices provided the strongest relief during the period, as food inflation declined to 19.59 per cent year-on-year in September, from 20.16 per cent in September 2025.

Food inflation turned negative on a month-on-month basis, falling to -1.55 per cent from 1.02 per cent in August.

NBS attributed the development to changes in the average prices of several food items, including guinea corn flour, white maize flour, local short-grain rice, eggs, fresh onions, palm oil, fresh green beans, Irish potatoes, okra, fresh tomatoes, dried green peas and plantain.

The average annual food inflation rate for the 12 months ending September stood at 15.72 per cent, down from 28.37 per cent in the corresponding period of 2025.

Despite the moderation, food inflation remained a major concern, with significant differences in price movements across states.

Core inflation presented a less encouraging picture, rising to 1.11 per cent month-on-month in September from -0.06 per cent in August.

Year-on-year, core inflation stood at 12.95 per cent, down from 22.11 per cent in September 2025.

The average annual core inflation rate for the 12 months ending September was 16.54 per cent, compared with 25.68 per cent in the corresponding period of the previous year.

The divergence between falling food prices and the acceleration in monthly core inflation suggested that the easing in headline inflation was not broad-based across all components of the consumer basket.

Urban inflation also remained elevated, standing at 15.64 per cent year-on-year in September, while its month-on-month rate increased to 0.53 per cent from 0.28 per cent in August.

The average annual urban inflation rate for the 12 months ending September was 15.90 per cent, substantially below the 28.48 per cent recorded in the corresponding period of 2025.

Rural inflation stood at 12.46 per cent year-on-year, with the monthly rate falling to -0.89 per cent from 1.79 per cent in August.

The average annual rural inflation rate declined to 15.32 per cent from 25.67 per cent in September 2025.

At the state level, Imo recorded the highest year-on-year headline inflation at 30.04 per cent, followed by Enugu at 22.38 per cent and Niger at 22.05 per cent.

Taraba recorded the lowest annual headline inflation at 1.78 per cent, followed by Bauchi at 2.84 per cent and Adamawa at 3.66 per cent.

Month-on-month, Imo also recorded the highest headline inflation at 8.64 per cent, followed by Kaduna at 4.46 per cent and Sokoto at 3.01 per cent.

In contrast, Adamawa recorded the steepest monthly decline at -6.10 per cent, followed by Bauchi at -5.31 per cent and Kano at -4.49 per cent.