Preambles
Yet local governments are getting close to states, from the federal purse, not to talk of their own IGR.
The formula is still the 1992 one, as of the latest reports from July 2026:
- Federal Government: 52.68%
- States: 26.72%
- Local governments: 20.60%
This is the split of the distributable statutory revenue, after the 13% derivation for oil-producing states comes off the top. Under the current revenue sharing formula, the federal government takes 52.68 per cent, the states 26.72 per cent and the local governments 20.60 per cent, with 13 per cent derivation revenue going to the oil-producing states.
VAT is shared differently: 15% to the Federal Government, 50% to states and 35% to local governments. This matches the April 2026 FAAC figures, where the Federal Government got about N74.7 billion of N747 billion distributable VAT.
A review is under way. The RMAFC began reviewing the formula in August 2025, noting the last major review was in 1992. At a July 2026 public hearing, Lagos proposed 34% for the federal government, 42% for states, 23% for local governments and 1% for Lagos as a special status allocation. An earlier RMAFC proposal under Buhari was 45.17% for the federal government, 29.79% for states and 21.04% for local governments, but it was never enacted.
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