Federal Government, the 36 states and 774 local government councils shared N2.338 trillion from the Federation Account in August 2026, representing a 22.2 percent decline from the N3.007 trillion distributed in July.
Gatekeepers News reports that the figure was disclosed following the September meeting of the Federation Account Allocation Committee (FAAC), held in Abuja. The August allocation was N669 billion lower than the record amount shared from July revenue.
According to the Office of the Accountant-General of the Federation, total gross revenue available for distribution in August stood at N3.685 trillion. Of this amount, N125.142 billion was deducted as the cost of revenue collection, while N1.221 trillion went to transfers, refunds and savings.
The remaining N2.338 trillion comprised N1.565 trillion in distributable statutory revenue and N773.233 billion in distributable Value Added Tax (VAT).
The Federal Government received N804.897 billion from the total distributable revenue, while the states received N794.313 billion and the local government councils got N555.142 billion.
Benefiting states also received N184.388 billion as 13 percent derivation revenue from mineral resources.
A breakdown of the statutory revenue showed that the Federal Government received N727.573 billion, while the states and local governments received N369.035 billion and N284.511 billion respectively.
From the N773.233 billion distributable VAT revenue, the Federal Government received N77.323 billion, states received N425.278 billion and local governments got N270.632 billion.
The decline in the overall allocation was largely driven by a sharp fall in statutory revenue. Gross statutory revenue dropped from N4.359 trillion in July to N2.850 trillion in August, representing a decrease of N1.508 trillion or 34.6 percent.
However, VAT revenue increased during the period. Gross VAT collections rose by N40.875 billion, from N793.968 billion in July to N834.843 billion in August, representing a 5.1 percent increase.
FAAC reported that Petroleum Profit Tax, Hydrocarbon Tax, VAT, Common External Tariff levies and excise duty recorded significant increases in August.
These gains were offset by declines in Companies Income Tax, Capital Gains Tax, Stamp Duties Tax, petroleum royalties, mineral royalties, gas-flaring penalties, import duty, rental gas-flaring fees and miscellaneous oil revenue.
The July allocation of N3.007 trillion had been the highest monthly FAAC distribution recorded in 2026 before the August decline.
