The Federal Government, the 36 states and 774 local government councils shared N2.338tn from the Federation Account in September, representing a N669bn decline from the previous month’s distribution.
The allocation, which was based on revenue generated in August 2026, was approved at the monthly meeting of the Federation Account Allocation Committee held in Abuja.
The amount distributed was 22.2 per cent lower than the N3.007tn shared by the three tiers of government at the August FAAC meeting from revenue generated in July.
The Office of the Accountant-General of the Federation disclosed the latest allocation in a statement issued on Thursday by its Director of Press and Public Relations, Bawa Mokwa.
The statement 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 reduction was largely driven by a substantial fall in statutory revenue during the month under review.
According to the FAAC communiqué, gross statutory revenue declined by N1.508tn, representing a 34.6 per cent drop, 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 August decline came after statutory revenue had recorded a strong increase in July, rising by N658.09bn from N3.700tn in June to N4.359tn.
Despite the decline in statutory revenue, collections from Value Added Tax continued to rise, increasing by N40.875bn during the month.
Gross VAT revenue climbed to N834.843bn in August from N793.968bn in July, representing a 5.1 per cent increase.
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.”
The total gross revenue available for distribution in August stood at N3.685tn. However, N125.142bn was deducted as the cost of collection, while N1.221tn was allocated to transfers, refunds and savings.
Following the deductions, N2.338tn was available for distribution, comprising N1.565tn in distributable statutory revenue and N773.233bn from VAT.
The Federal Government received N804.897bn from the total distributable revenue, while the 36 states received N794.313bn.
The 774 local government councils got N555.142bn, while N184.388bn was distributed to benefiting states as the 13 per cent derivation revenue from mineral resources.
A further breakdown showed that the Federal Government received N727.573bn from the N1.565tn distributable statutory revenue, while the states got N369.035bn and local governments N284.511bn.
The benefiting states also received N184.388bn as derivation revenue.
From the N773.233bn distributable VAT pool, the Federal Government received N77.323bn, states got N425.278bn, while the local government councils received N270.632bn.
The FAAC communiqué also revealed divergent movements in the various revenue sources during August.
Revenue from Petroleum Profit Tax, Hydrocarbon Tax, Value Added Tax, Common External Tariff levies and excise duty recorded increases during the period.
However, revenue from Companies Income Tax, Capital Gains Tax, Stamp Duties Tax, petroleum royalties, mineral royalties, gas-flared penalties, import duty, rental gas-flared fees and miscellaneous oil revenue declined.
The latest distribution represents a significant reversal from the record allocation shared in August, which had followed the strongest monthly FAAC revenue performance recorded in 2026 at that point.
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