The Federal Government generated N19.12 trillion from non-oil revenue between January and September 2026, according to the latest report on Federation Account Allocation Committee (FAAC) disbursements by Agora.
The figure comprised N11.91 trillion in non-oil statutory revenue and N7.21 trillion from Value Added Tax (VAT). VAT accounted for about 22.9 per cent of the Federation’s total gross FAAC revenue over the period, showing the weight of consumption-related taxes in government earnings.
Agora attributed the result partly to tax reforms and higher collections from Company Income Tax (CIT) and other corporate tax components. It also pointed to the foreign exchange reforms introduced in 2023.
The report explained that VAT collections depend largely on the level of taxable economic activity, consumer spending, business transactions and the effectiveness of collection mechanisms.
Impact of FX and subsidy reforms
On the exchange rate, Agora said the adjustment raised the naira value of government receipts, particularly earnings denominated in foreign currencies.
It also identified the foreign exchange and petrol subsidy reforms as factors behind the sharp rise in nominal FAAC revenue recorded in 2024. The reforms, introduced in 2023, included the unification of foreign exchange windows and the removal of the petrol subsidy.
According to the report, these changes affected the Federation’s revenue and expenditure position by increasing the naira value of foreign-currency-denominated earnings and reducing the government’s exposure to subsidy-related spending.
