At the Federation Account Allocation Committee meeting in September, the federal government, states, and local government councils distributed N2.338 trillion, a 22.2% decrease from the record N3.007 trillion distributed the month before.
According to a statement released on Thursday by the Office of the Accountant-General of the Federation, the N2.338 trillion discussed during the meeting in Abuja represents income earned in August 2026.
In comparison to the N3.007 trillion disclosed at the August FAAC meeting from income generated in July, the decrease was N669 billion.
The July allotment was the greatest in reviewed records going back to 2019 and the highest monthly FAAC distribution in 2026.
“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,” stated Bawa Mokwa, the OAGF’s Director of Press and Public Relations.
A significant decrease in statutory revenue was followed by a dip in the amount available for distribution. The FAAC communiqué states that gross statutory revenue decreased from N4.359 trillion in July to N2.850 trillion in August, a decrease of N1.508 trillion, or 34.6%.
For August 2026, N2.850 trillion in gross statutory revenue was received. This was N1.508 trillion less than the N4.359 trillion received in the previous month, according to the statement.
Gross statutory revenue increased by N658.09 billion from N3.700 trillion in June to N4.359 trillion in July, a notable rise that was reversed by the fall.
Value Added Tax receipts, however, continued to rise, increasing by N40.88 billion in August. Gross VAT income increased by 5.1% to N834.843 billion from N793.968 billion in July.
The Value Added Tax generated gross income of N834.843 billion in August 2026, according to the release. This was N40.875 billion more than the N793.968 billion that was available in July 2026.
August gross income was N3.685 trillion in total. Transfers, refunds, and savings totalled N1.221 trillion, while N125.142 billion was subtracted as collection costs.
This left N2.338 trillion to be distributed among the three levels of government, including N773.233 billion in distributable VAT and N1.565 trillion in distributable statutory revenue.
According to a breakdown of the distribution, the 36 states received N794.313 billion, while the federal government received N804.897 billion.
While beneficiary states received N184.388 billion, or 13% of mineral earnings, as derivation revenue, the 774 local government councils received N555.142 billion.
The Federal Government received N727.573 billion, states received N369.035 billion, and local governments received N284.511 billion from the N1.565 trillion distributable statutory revenue.
Benefiting states received an additional N184.388 billion in derivation revenue. The Federal Government received N77.323 billion, states received N425.278 billion, and local governments received N270.632 billion of the N773.233 billion distributable VAT revenue.
Additionally, the communiqué revealed inconsistent results for the month in all of the main sources of income. It stated that in August, there was a notable increase in the petroleum profit tax, hydrocarbon tax, VAT, common external tariff levies, and excise duty.
Companies’ income tax, capital gains tax, stamp duty tax, petroleum royalties, mineral royalties, gas-flared penalties, import duty, rental gas-flared fees, and miscellaneous oil revenue, on the other hand, significantly decreased.
