The Federal Government, states and local government councils shared N2.338 trillion in August 2026 revenue, marking a 22.2 per cent decline from the record N3.007 trillion distributed in July. The allocation was made at the September meeting of the Federation Account Allocation Committee (FAAC) held in Abuja, according to the Office of the Accountant-General of the Federation.
The latest FAAC allocation represents a N669 billion drop compared with the previous month. The decline was largely driven by a sharp fall in statutory revenue, which dropped by N1.508 trillion, or 34.6 per cent, from N4.359 trillion in July to N2.850 trillion in August. July’s allocation had been the highest monthly FAAC distribution recorded in 2026 and the largest in reviewed records dating back to 2019.
Despite the overall decline, Value Added Tax (VAT) revenue recorded another increase during the month. Gross VAT collections rose by N40.875 billion, or 5.1 per cent, to N834.843 billion in August from N793.968 billion in July. Overall, N3.685 trillion in gross revenue was available for the month, with N125.142 billion deducted as the cost of collection and N1.221 trillion allocated to transfers, refunds and savings.
After the deductions, N2.338 trillion was available for distribution among the three tiers of government. The Federal Government received N804.897 billion, the 36 states received N794.313 billion, while the 774 local government councils received N555.142 billion. In addition, N184.388 billion, representing the 13 per cent derivation revenue from mineral resources, was paid to benefiting states.
The FAAC figures also showed mixed performances across major revenue streams in August. Petroleum Profit Tax, Hydrocarbon Tax, VAT, Common External Tariff levies and excise duty recorded increases, while Companies Income Tax, Capital Gains Tax, Stamp Duties, petroleum royalties, mineral royalties, gas-flaring penalties, import duty, rental gas-flaring fees and miscellaneous oil revenue declined. The latest figures highlight the month-to-month volatility in Nigeria’s federally collected revenue and its impact on allocations to the three tiers of government.
source: punch