The Federal Government, states and local government councils shared N2.33 trillion from the Federation Account in August 2026, representing a 22.3 percent decline from the N3 trillion distributed in July.
The Federation Account Allocation Committee (FAAC) disclosed this in a statement issued on Thursday, September 17, 2026, by Bawa Mokwa, Director of Press and Public Relations at the Office of the Accountant-General of the Federation (OAGF), following the committee’s September meeting in Abuja.
The N2.33 trillion distributed to the three tiers of government comprised N1.56 trillion in distributable statutory revenue and N773.23 billion in distributable Value Added Tax (VAT) revenue.
FAAC said total gross revenue of N3.68 trillion accrued in August, while N125.14 billion was deducted as the cost of revenue collection.
It added that total transfers, refunds and savings amounted to N1.22 trillion during the month.
The committee reported that gross statutory revenue stood at N2.85 trillion in August, representing a N1.5 trillion decline from the N4.35 trillion recorded in July.
However, VAT revenue recorded an increase during the period.
“Gross revenue of N834.84 billion was available from the Value Added Tax (VAT) in August 2026,” the statement said.
“This was higher than the N793.96 billion available in the month of July 2026 by N40.87 billion.”
Of the N2.33 trillion total distributable revenue, the Federal Government received N804.89 billion, while the states received N794.31 billion and the 774 local government councils received N555.14 billion.
FAAC also disclosed that N184.388 billion, representing 13 percent of mineral revenue, was distributed to benefiting states as derivation revenue.
Breaking down the N1.56 trillion distributable statutory revenue, the Federal Government received N727.57 billion, states got N369.03 billion, while local governments received N284.51 billion.
The committee again put the 13 percent derivation revenue shared among the benefiting states at N184.38 billion.
From the N773.23 billion distributable VAT revenue, the Federal Government received N77.32 billion, states received N425.27 billion, while local government councils received N270.63 billion.
FAAC said revenue performance across the various sources was mixed during the month under review.
According to the committee, Petroleum Profit Tax (PPT), Hydrocarbon Tax (HT), VAT, Common External Tariff (CET) levies and excise duty recorded significant increases in August.
However, Company Income Tax (CIT), Capital Gains Tax (CGT), petroleum royalties, mineral royalties, gas-flared penalty, import duty and rental gas-flared fees recorded considerable declines.
The latest allocation represents a significant month-on-month reduction in funds distributed to the three tiers of government, following the higher revenue allocation recorded in July 2026.
