By Nchetachi Chukwuajah
The Federal Government, states, and local government councils (LGs) shared N2.338 trillion at the September meeting of the Federation Account Allocation Committee (FAAC), being revenue generated in August 2026.
The amount shared among the three tiers of government was a 22.2 percent, or N669 billion, decrease from the N3.007 trillion distributed in July 2026.
The July allocation was the highest monthly FAAC distribution recorded in 2026 and the largest in reviewed records dating back to 2019.
According to a statement issued on Thursday, September 17, by the Office of the Accountant-General of the Federation, the N2.338 trillion August revenue was shared at the meeting held in Abuja.
The statement by the Director of Press and Public Relations in the OAGF, Bawa Mokwa, read, “A total sum of N2.338tn, being August 2026 Federation Account Revenue, has been shared to the Federal Government, States and the Local Government Councils.”
The decline in the amount available for distribution followed a sharp drop in statutory revenue.
According to the FAAC communiqué, gross statutory revenue fell by N1.508 trillion, or 34.6 percent, to N2.850 trillion in August from N4.359 trillion in July.
“Gross statutory revenue of N2.850 trillion was received for the month of August 2026. This was lower than the sum of N4.359 trillion received in the preceding month by N1.508 trillion,” the statement read.
The decline contributed to the reversal of the significant increase recorded in July, when gross statutory revenue rose by N658.09 billion from N3.700 trillion in June to N4.359 trillion.
According to the FAAC communiqué, Value Added Tax (VAT) collections, however, increased by N40.875 billion in August to reach N834.843 billion.
Gross VAT revenue increased by 5.1 percent in August to N834.843 billion from the N793.968 billion recorded in July.
The statement said, “Gross revenue of N834.843 billion was available from the Value Added Tax in August 2026. This was higher than the N793.968 billion available in the month of July 2026 by N40.875 billion.”
The gross revenue available in August stood at a total of N3.685 trillion, out of which N125.142 billion was deducted as cost of collection, while transfers, refunds and savings totalled N1.221 trillion.
The Federal Government, states, and LGs were then left with N2.338 trillion for distribution, comprising N1.565 trillion in distributable statutory revenue and N773.233 billion in distributable VAT.
The FAAC allocation breakdown showed the Federal Government received N804.897 billion, while the 36 states received N794.313 billion.
The 774 local government councils received N555.142 billion, while N184.388 billion, representing 13 percent of mineral revenue, was paid to benefiting states as derivation revenue.
From the N1.565 trillion distributable statutory revenue, the Federal Government received N727.573 billion, states got N369.035 billion and local governments received N284.511 billion.
Another N184.388 billion was paid to benefiting states as derivation revenue.
From the N773.233 billion distributable VAT revenue, the Federal Government received N77.323 billion, states received N425.278 billion, while local governments got N270.632 billion.
The communiqué also showed mixed performances across the major revenue streams during the month.
It said Petroleum Profit Tax, Hydrocarbon Tax, VAT, Common External Tariff levies and excise duty increased significantly in August.
On the other hand, Companies Income Tax, Capital Gains Tax, Stamp Duties Tax, petroleum royalties, mineral royalties, gas-flared penalties, import duty, rental gas-flared fees and miscellaneous oil revenue significantly decreased.
