The Federal Government, state governments and local government councils received a combined N2.338tn from the Federation Account at the September meeting of the Federation Account Allocation Committee, representing a 22.2 per cent decrease from the record N3.007tn allocated in the previous month.
The N2.338tn distributed at the meeting in Abuja was generated as revenue in August 2026, according to a statement released on Thursday by the Office of the Accountant-General of the Federation.
Compared with the N3.007tn shared at the August FAAC meeting from July revenue, the latest allocation represents a reduction of N669bn.
The statement signed by the Director of Press and Public Relations at 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 lower allocation was largely attributed to a substantial fall in statutory revenue. Figures contained in the FAAC communiqué showed that gross statutory revenue dropped by N1.508tn, equivalent to 34.6 per cent, from N4.359tn in July to N2.850tn in August.
“Gross statutory revenue of N2.850tn was received for the month of August 2026. This was lower than the sum of N4.359tn received in the preceding month by N1.508tn,” the statement read.
The decline came after statutory revenue recorded a notable increase in July, climbing by N658.09bn from N3.700tn in June to N4.359tn.
Meanwhile, revenue from Value Added Tax continued its upward movement, increasing by N40.88bn during August. Gross VAT revenue reached N834.843bn, which was 5.1 per cent higher than the N793.968bn recorded in July.
The statement said, “Gross revenue of N834.843bn was available from the Value Added Tax in August 2026. This was higher than the N793.968bn available in the month of July 2026 by N40.875bn.”
Overall, gross revenue available for August stood at N3.685tn. Of this amount, N125.142bn was deducted for the cost of revenue collection, while N1.221tn went towards transfers, refunds and savings.
After the deductions, N2.338tn remained available for distribution among the three tiers of government. This comprised N1.565tn in distributable statutory revenue and N773.233bn from Value Added Tax.
The Federal Government received N804.897bn, while the 36 state governments collectively received N794.313bn.
The 774 local government councils were allocated N555.142bn, while N184.388bn, representing the 13 per cent derivation from mineral revenue, was distributed to states entitled to derivation revenue.
Of the N1.565tn distributable statutory revenue, the Federal Government received N727.573bn, states got N369.035bn, while local governments received N284.511bn.
An additional N184.388bn was allocated to benefiting states as derivation revenue. From the N773.233bn distributable VAT revenue, the Federal Government received N77.323bn, states received N425.278bn and local governments got N270.632bn.
The FAAC communiqué further reported varying performances across the key revenue sources during August. Petroleum Profit Tax, Hydrocarbon Tax, VAT, Common External Tariff levies and excise duty recorded significant increases during the month.
However, Companies Income Tax, Capital Gains Tax, Stamp Duties Tax, petroleum royalties, mineral royalties, gas-flaring penalties, import duty, rental gas-flared fees and miscellaneous oil revenue recorded notable declines.
