Toyyibat Qasim
The Federal Government, 36 states and the 774 Local Government Areas shared N2.338tn in revenue generated in August 2026, according to the Federation Account Allocation Committee.
The latest allocation represents distributable revenue from statutory revenue and Value Added Tax collected during the month, with the three tiers of government receiving different portions based on the applicable revenue-sharing formula.
The Director of Press and Public Relations in the Office of the Accountant-General of the Federation, Bawa Mokwa, disclosed the figures in a statement on Thursday in Abuja.
According to the statement, the N2.338tn shared at the September 2026 FAAC meeting comprised N1.565tn in distributable statutory revenue and N773.233bn from VAT.
The committee said total gross revenue available for the month stood at N3.685tn.
However, after deductions for the cost of revenue collection amounting to N125.142bn, as well as transfers, refunds and savings totalling N1.221tn, the amount available for distribution dropped to N2.338tn.
The Federal Government received N804.897bn from the distributable revenue, while the 36 state governments received N794.313bn.
The Local Government Councils received N555.142bn, while N184.388bn was distributed to benefiting states as the 13 per cent derivation from mineral revenue.
The figures showed a sharp month-on-month decline in gross statutory revenue.
FAAC said N2.850tn in gross statutory revenue was generated in August, representing a decline of N1.508tn from the N4.359tn recorded in July.
The development contrasts with the performance of VAT, which recorded an increase during the period.
Gross VAT revenue rose to N834.843bn in August from N793.968bn in July, representing an increase of N40.875bn.
Of the N1.565tn distributable statutory revenue, the Federal Government received N727.573bn, states got N369.035bn, while Local Government Councils received N284.511bn.
The N184.388bn derivation revenue was also shared among the benefiting states.
From the N773.233bn distributable VAT revenue, the Federal Government received N77.323bn, states received N425.278bn and Local Government Councils got N270.632bn.
The committee attributed the changes in revenue performance to movements in various revenue streams.
According to FAAC, Petroleum Profit Tax, Hydrocarbon Tax, VAT, Customs and Excise Duty increased significantly during the month.
However, Companies Income Tax, Capital Gains Tax, Stamp Duty Tax, petroleum royalties, mineral royalties, gas-flaring penalties, import duties, rental gas-flaring fees and miscellaneous oil revenue recorded considerable declines.
The latest FAAC figures come amid continued dependence of states and local governments on federally distributed revenue to finance recurrent expenditure, infrastructure and other public services.
For the three tiers of government, the August allocation is therefore a significant component of their monthly fiscal resources, particularly for states and local councils with limited internally generated revenue.
PLATFORM TIMES reports that the sharp fall in statutory revenue between July and August highlights the continued volatility of Nigeria’s federally collected revenue, even as VAT receipts recorded growth during the same period.
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