The Federal Government, 36 states and 774 local government councils have shared ₦2.338 trillion from revenue generated in August 2026.
The allocation was made at the September meeting of the Federation Account Allocation Committee (FAAC) held in Abuja. The distributable amount comprised ₦1.565 trillion in statutory revenue and ₦773.233 billion from Value Added Tax (VAT).
According to the FAAC communiqué, total gross revenue available to the Federation Account stood at ₦3.685 trillion during the month. Of this, ₦125.142 billion was deducted as the cost of collection, while ₦1.221 trillion was allocated to transfers, refunds and savings.
Gross statutory revenue fell sharply to ₦2.850 trillion in August from ₦4.359 trillion in July, representing a decline of ₦1.508 trillion.
VAT revenue, however, recorded an increase during the period. Gross VAT collections rose to ₦834.843 billion in August from ₦793.968 billion in July, an increase of ₦40.875 billion.
From the total distributable revenue, the Federal Government received ₦804.897 billion, while the 36 states received ₦794.313 billion. Local government councils received ₦555.142 billion, while ₦184.388 billion was distributed to benefiting states as the constitutionally prescribed 13 per cent derivation from mineral revenue.
A breakdown of the statutory revenue showed that the Federal Government received ₦727.573 billion, states got ₦369.035 billion, and local governments received ₦284.511 billion. The benefiting states also received the ₦184.388 billion derivation allocation.
From the distributable VAT pool, the Federal Government received ₦77.323 billion, states ₦425.278 billion, and local government councils ₦270.632 billion.
FAAC said revenue from Petroleum Profit Tax, Hydrocarbon Tax, VAT, Customs and Excise Tariff levies and Excise Duty increased significantly in August.
However, collections from Companies Income Tax, Capital Gains Tax, Stamp Duty Tax, petroleum royalties, mineral royalties, gas-flaring penalties, import duty, rental gas-flaring fees and miscellaneous oil revenue recorded considerable declines.
The August allocation represents a significant decline from the ₦3.007 trillion shared by the three tiers of government in July, reflecting the sharp contraction in statutory revenue despite improved VAT collections.
