The Federal Government, states and local government councils have shared N2.338tn from revenue generated in August 2026, representing a 22.2 per cent decline from the N3.007tn distributed in the preceding month.
The latest allocation was announced following the September meeting of the Federation Account Allocation Committee, FAAC, in Abuja. According to the Office of the Accountant-General of the Federation, the amount represented revenue generated in August and was N669bn lower than the record allocation shared in August from July revenue.
The decline in the amount available for distribution was largely driven by a sharp fall in gross statutory revenue.
FAAC reported that gross statutory revenue dropped by N1.508tn, or 34.6 per cent, from N4.359tn in July to N2.850tn in August.
The fall reversed the increase recorded in the previous month, when statutory revenue had risen by N658.09bn from N3.700tn in June to N4.359tn in July.
Despite the decline in statutory revenue, Value Added Tax recorded an increase during the period.
Gross VAT revenue rose by N40.875bn, representing a 5.1 per cent increase, from N793.968bn in July to N834.843bn in August.
In total, N3.685tn in gross revenue was available for the month under review. From this amount, N125.142bn was deducted as the cost of collection, while N1.221tn was deducted for transfers, refunds and savings.
The remaining N2.338tn was available for distribution among the three tiers of government. The distributable amount consisted of N1.565tn in statutory revenue and N773.233bn in VAT revenue.
The Federal Government received N804.897bn from the total allocation, while the 36 states received 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.
A further breakdown showed that the N1.565tn distributable statutory revenue was shared among the three tiers, with the Federal Government receiving N727.573bn, states receiving N369.035bn and local governments receiving N284.511bn.
The N184.388bn derivation payment was allocated separately to benefiting states.
From the N773.233bn distributable VAT revenue, the Federal Government received N77.323bn, states received N425.278bn and local governments received N270.632bn.
The revenue figures reflect mixed performances across Nigeria’s major revenue sources during August.
According to the FAAC communiqué, Petroleum Profit Tax, Hydrocarbon Tax, VAT, Common External Tariff levies and excise duty recorded increases during the month.
However, several other revenue streams declined.
These included 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 latest allocation is significant for the three tiers of government because FAAC distributions remain a major source of public revenue for the Federal Government, states and local councils.
The decline therefore means that the amount available to governments for their respective spending obligations was considerably lower than the previous month’s distribution.
The July allocation of N3.007tn had been the highest monthly FAAC distribution recorded in 2026 and, according to The PUNCH, the largest in reviewed records dating back to 2019.
The latest figures consequently represent a notable month-on-month reversal in the amount shared among the three tiers.
While VAT continued to show growth in August, the sharp contraction in statutory revenue more than offset the increase and resulted in a lower overall distributable amount.
The figures also highlight the varying performance of Nigeria’s revenue sources, with some tax and petroleum-related streams increasing while others recorded substantial declines.
For states and local governments, the monthly FAAC distribution remains an important component of their finances, particularly for meeting recurrent obligations and funding public services.
The latest figures will therefore be closely monitored as governments prepare for subsequent monthly allocations and as the Federal Government continues efforts to strengthen domestic revenue mobilisation.
For August revenue, however, the central outcome is a reduction in the funds available for distribution, with the three tiers receiving N2.338tn compared with N3.007tn in the previous allocation.
