The Federal Government, state governments and Local Government Councils shared a total of ₦2.338 trillion from the Federation Account revenue generated in August 2026.
The allocation was approved at the September meeting of the Federation Account Allocation Committee (FAAC) held in Abuja.
According to a communiqué issued after the meeting, the distributable revenue consisted of ₦1.565 trillion from statutory revenue and ₦773.233 billion from Value Added Tax (VAT).
FAAC disclosed that a gross revenue of ₦3.685 trillion was available in August for distribution. From this amount, ₦125.142 billion was deducted as the cost of collection, while ₦1.221 trillion was set aside for transfers, refunds and savings.
The committee noted that gross statutory revenue declined to ₦2.850 trillion in August from ₦4.359 trillion recorded in July, representing a drop of ₦1.508 trillion.
In contrast, VAT collections improved during the period. Gross VAT revenue increased by ₦40.875 billion to ₦834.843 billion in August, compared to ₦793.968 billion in July.
From the ₦2.338 trillion shared among the three tiers of government, the Federal Government received ₦804.897 billion, while state governments received ₦794.313 billion.
Local Government Councils received ₦555.142 billion, while oil-producing states received ₦184.388 billion as 13 per cent derivation revenue from mineral resources.
Statutory Revenue Distribution
Out of the ₦1.565 trillion distributable statutory revenue, the Federal Government received ₦727.573 billion.
State governments received ₦369.035 billion, while Local Government Councils received ₦284.511 billion.
The sum of ₦184.388 billion was also allocated to eligible states as derivation revenue.
VAT Revenue Distribution
From the ₦773.233 billion distributable VAT revenue, the Federal Government received ₦77.323 billion.
State governments received ₦425.278 billion, while Local Government Councils received ₦270.632 billion.
The communiqué further indicated that revenue generated from Petroleum Profit Tax, Hydrocarbon Tax, Value Added Tax, Customs Excise Tariff levies and Excise Duty recorded significant increases during the month.
However, earnings from 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 declined considerably in August.
