The Federal Government, 36 states and the 774 Local Government Councils have shared ₦2.338 trillion in Federation Account revenue generated in August 2026.
The allocation was announced following the September meeting of the Federation Account Allocation Committee (FAAC) held in Abuja, according to a statement by Bawa Mokwa, Director of Press and Public Relations at the Office of the Accountant-General of the Federation.
The amount distributed comprised ₦1.565 trillion in distributable statutory revenue and ₦773.233 billion from Value Added Tax (VAT).
Gross revenue stood at ₦3.685trn
According to the FAAC communiqué, total gross revenue available for the month stood at ₦3.685 trillion.
Of this amount, ₦125.142 billion was deducted as the cost of collection, while ₦1.221 trillion was allocated to transfers, refunds and savings.
After the deductions and other allocations, ₦2.338 trillion was available for distribution among the three tiers of government.
Statutory revenue drops sharply
The allocation came amid a significant decline in gross statutory revenue.
FAAC reported that gross statutory revenue fell to ₦2.850 trillion in August, compared with ₦4.359 trillion recorded in July — a decline of ₦1.508 trillion.
By contrast, VAT revenue increased during the period. Gross VAT revenue rose to ₦834.843 billion in August from ₦793.968 billion in July, representing an increase of ₦40.875 billion.
How the ₦2.338trn was shared
From the total distributable revenue, the Federal Government received ₦804.897 billion, while the state governments received ₦794.313 billion.
The Local Government Councils received ₦555.142 billion, while ₦184.388 billion, representing 13 per cent of mineral revenue, was shared among benefiting states as derivation revenue.
Of the ₦1.565 trillion distributable statutory revenue, the Federal Government received ₦727.573 billion, states received ₦369.035 billion and Local Government Councils received ₦284.511 billion. The ₦184.388 billion derivation component was also distributed to benefiting states.
From the ₦773.233 billion distributable VAT revenue, the Federal Government received ₦77.323 billion, states received ₦425.278 billion and Local Government Councils received ₦270.632 billion.
Mixed revenue performance
The FAAC communiqué indicated that Petroleum Profit Tax, Hydrocarbon Tax, VAT, Customs Excise Tariff levies and Excise Duty recorded significant increases during August.
However, Companies Income Tax, Capital Gains Tax, Stamp Duty, Petroleum Royalties, Mineral Royalties, Gas Flared Penalty, Import Duty, Rental Gas Flared Fee and miscellaneous oil revenue recorded decreases.
The August allocation was lower than the ₦3.007 trillion shared among the three tiers of government from July revenue at the previous FAAC meeting, representing a decline of about ₦669 billion, or 22.2 per cent.
The latest figures highlight the month-to-month volatility in Nigeria’s Federation Account revenue, with the sharp fall in statutory revenue outweighing the increase recorded in VAT collections.