ABUJA — The Federal Government, 36 states and local government councils shared N2.338 trillion as Federation Account allocation for August 2026, according to the Federation Account Allocation Committee (FAAC).
The allocation was approved at FAAC’s September 2026 meeting, chaired by the Accountant-General of the Federation, Shamseeldeen Ogunjimi.
Of the total amount shared, the Federal Government received N804.897 billion, while the states received N794.313 billion. Local government councils received N555.142 billion.
An additional N184.388 billion was distributed to oil-producing states as derivation revenue, representing the constitutionally prescribed 13 per cent of mineral revenue.
The August allocation represents a significant decline from the N3.007 trillion shared among the three tiers of government in the previous month. The difference amounts to about N669 billion, or 22.2 per cent.
VAT revenue rises
According to the FAAC communiqué, gross Value Added Tax revenue increased in August to N834.843 billion from N793.968 billion recorded in July.
After deductions for the cost of collection, transfers, interventions and refunds, N733.233 billion from VAT was available for distribution.
The Federal Government received N77.323 billion from the distributable VAT revenue, while states received N425.278 billion and local government councils received N270.632 billion.
Statutory revenue records decline
Gross statutory revenue, however, fell sharply during the period under review.
The figure dropped to N2.850 trillion in August from N4.359 trillion recorded in July, representing a decrease of N1.509 trillion.
After deductions and other statutory adjustments, N1.565 trillion from statutory revenue was available for distribution.
The Federal Government received N727.573 billion, states received N369.035 billion, while local government councils received N284.511 billion.
The mineral-producing states also received the N184.388 billion derivation revenue.
Mixed revenue performance
The FAAC report showed that some revenue streams recorded increases during August, including Petroleum Profit Tax, Hydrocarbon Tax, Value Added Tax, Customs and Excise Duties levies and Excise Duty.
However, revenue from Companies Income Tax and Capital Gains Tax, Stamp Duty Tax, Petroleum Royalties, Mineral Royalties, Gas Flared Penalty, Import Duty, Rental, Gas Flared Fee and Miscellaneous Oil Revenue declined during the period.
The total distributable revenue for August was derived from statutory revenue and VAT, bringing the amount shared by the three tiers of government to N2.338 trillion.
The latest FAAC distribution highlights the month-to-month fluctuations in revenue available to Nigeria’s three tiers of government, with the August figure coming below the record allocation shared from July revenue in the previous month.
