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The Federation Allocation Account Committee (FAAC) has shared ₦2.338 trillion in August 2026 Federation Account revenue among the Federal Government, states and local government councils, significantly below the ₦3.007 trillion distributed in the preceding month.
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The latest allocation represents a ₦669 billion, or 22.2 percent, month-on-month decline, largely driven by a sharp contraction in statutory revenue, which fell by ₦1.508 trillion from the July figure.
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Despite the decline in statutory revenue, Value Added Tax (VAT) collections continued to rise, increasing by ₦40.875 billion to ₦834.843 billion in August from ₦793.968 billion recorded in July.
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From the ₦2.338 trillion distributed, the Federal Government received ₦804.897 billion, the 36 states got ₦794.313 billion, and the 774 local government councils received ₦555.142 billion, while ₦184.388 billion went to benefiting states as derivation revenue.
September 17, (THEWILL) – The Federation Allocation Account Committee (FAAC) has shared a total sum of ₦2.338 trillion to the Federal Government, States and Local Government Councils as August 2026 Federation Account Revenue.
According to a statement issued on Thursday by the Office of the Accountant-General of the Federation, the allocation was announced after the September meeting of FAAC held in Abuja.
THEWILL reports that the amount represents a 22.2 percent decline from the ₦3.007 trillion shared by the three tiers of government at the previous FAAC meeting from revenue generated in July.
The latest distribution is ₦669 billion lower than the July allocation, which was the highest monthly FAAC distribution recorded in 2026 and the largest in reviewed records dating back to 2019.
The Director of Press and Public Relations in the Office of the Accountant-General of the Federation, Bawa Mokwa, confirmed the latest allocation in the statement.
“A total sum of ₦2.338trn, being August 2026 Federation Account Revenue, has been shared to the Federal Government, States and the Local Government Councils”, he said.
Statutory Revenue Drops
The decline in the amount available for distribution was largely caused by a sharp fall in statutory revenue.
According to the FAAC communiqué, gross statutory revenue dropped by ₦1.508 trillion, or 34.6 percent, from ₦4.359 trillion in July to ₦2.850 trillion in August.
“Gross statutory revenue of ₦2.850trn was received for the month of August 2026. This was lower than the sum of ₦4.359trn received in the preceding month by ₦1.508 trillion”, the communiqué stated.
The decline reversed the significant increase recorded in July, when gross statutory revenue rose by ₦658.09 billion from ₦3.700 trillion in June to ₦4.359 trillion.
The sharp movement in statutory revenue was reflected in the overall amount available for distribution among the three tiers of government.
VAT Revenue Rises
Value Added Tax, however, maintained its upward trend during the month. Gross VAT revenue increased by ₦40.875 billion, representing a 5.1 percent rise from ₦793.968 billion in July to ₦834.843 billion in August.
“Gross revenue of ₦834.843bn was available from the Value Added Tax in August 2026. This was higher than the ₦793.968bn available in the month of July 2026 by ₦40.875bn”, FAAC said.
In total, ₦3.685 trillion in gross revenue was available in August. From the amount, ₦125.142 billion was deducted as the cost of collection, while ₦1.221 trillion went to transfers, refunds and savings.
This left ₦2.338 trillion as distributable revenue to the three tiers of government.
The distributable amount comprised ₦1.565 trillion in statutory revenue and ₦773.233 billion in VAT revenue.
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FG Gets ₦804.897bn
The communiqué stated that from the ₦2.338 trillion total distributable revenue, the Federal Government received ₦804.897 billion, while the state governments received ₦794.313 billion. The 774 local government councils received ₦555.142 billion.
In addition, ₦184.388 billion, representing 13 percent of mineral revenue, was shared among benefiting states as derivation revenue.
A breakdown of the statutory revenue component showed that out of the ₦1.565 trillion distributable statutory revenue, the Federal Government received ₦727.573 billion.
The state governments received ₦369.035 billion, while the local government councils received ₦284.511 billion.
The sum of ₦184.388 billion was also shared among benefiting states as 13 percent derivation revenue.
From the ₦773.233 billion distributable VAT revenue, the Federal Government received ₦77.323 billion, while the state governments received ₦425.278 billion.
The local government councils received ₦270.632 billion from the VAT component.
Mixed Revenue Performance
The FAAC communiqué also showed mixed performance across the major revenue sources in August.
Petroleum Profit Tax (PPT), Hydrocarbon Tax (HT), Value Added Tax (VAT), Common External Tariff (CET) levies and Excise Duty recorded significant increases during the month.
However, Companies Income Tax (CIT), Capital Gains Tax (CGT), Stamp Duties Tax (SDT), Petroleum Royalties, Mineral Royalties, Gas-Flared Penalties, Import Duty, Rental Gas-Flared Fees and miscellaneous oil revenue recorded considerable declines.
The contrasting performance of the different revenue streams contributed to the reduction in the overall distributable revenue compared with the record amount shared in July.
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