The Federal Government, states and local government councils shared N2.338tn from the Federation Account for August 2026, a drop of N669bn from the N3.007tn distributed in the previous month.
The allocation was approved at the September meeting of the Federation Account Allocation Committee (FAAC) held in Abuja, according to a statement issued on Thursday by the Office of the Accountant-General of the Federation.
The N2.338tn allocation represents a 22.2 per cent decline from the N3.007tn shared in August from revenue generated in July.
The latest decline was driven mainly by a sharp fall in gross statutory revenue, which dropped by N1.508tn, or 34.6 per cent, from N4.359tn in July to N2.850tn in August.
The statement signed by the Director of Press and Public Relations in the OAGF, Bawa Mokwa, said, “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.”
On statutory revenue, the statement said, “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 decline came after statutory revenue recorded a strong increase in July, when it rose by N658.09bn from N3.700tn in June to N4.359tn.
However, Value Added Tax revenue continued to increase, rising by N40.875bn to N834.843bn in August from N793.968bn in July.
The OAGF 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.”
A total of N3.685tn in gross revenue was available for August. Of this amount, N125.142bn was deducted as the cost of collection, while N1.221tn went to transfers, refunds and savings.
After the deductions, N2.338tn was available for distribution, comprising N1.565tn in distributable statutory revenue and N773.233bn in distributable VAT.
The Federal Government received N804.897bn, while the 36 states got N794.313bn.
The 774 local government councils received N555.142bn, while N184.388bn was paid to benefiting states as 13 per cent derivation revenue from mineral resources.
From the N1.565tn distributable statutory revenue, the Federal Government received N727.573bn, states got N369.035bn and local governments received N284.511bn. An additional N184.388bn was paid to benefiting states as derivation revenue.
For the N773.233bn distributable VAT revenue, the Federal Government received N77.323bn, states got N425.278bn, while local governments received N270.632bn.
The FAAC communiqué also showed mixed performances among the major revenue sources in August.
Petroleum Profit Tax, Hydrocarbon Tax, VAT, Common External Tariff levies and excise duty recorded increases during the month.
However, Companies Income Tax, Capital Gains Tax, Stamp Duties Tax, petroleum royalties, mineral royalties, gas-flaring penalties, import duty, rental gas-flared fees and miscellaneous oil revenue recorded declines.
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