Federal Government gets N804.9bn as states receive N794.3bn and local councils N555.1bn from August distributable revenue

The Federation Account Allocation Committee (FAAC) has shared a total of N2.338 trillion in August 2026 Federation Account revenue among the Federal Government, state governments and local government councils.

The distribution was announced in a statement issued on Thursday by Bawa Mokwa, Director of Press and Public Relations at the Office of the Accountant-General of the Federation, following the September 2026 FAAC meeting held in Abuja.

The total distributable revenue comprised N1.565 trillion in statutory revenue and N773.233 billion from Value Added Tax (VAT).

Of the N2.338 trillion shared, the Federal Government received N804.897 billion, while the 36 state governments received N794.313 billion.

Local government councils received N555.142 billion, while N184.388 billion, representing the 13 per cent derivation revenue from mineral-producing areas, was shared among the benefiting states.

Statutory revenue

The communiqué showed that N1.565 trillion of the distributable funds came from statutory revenue.

From this amount, the Federal Government received N727.573 billion, while state governments received N369.035 billion.

Local government councils received N284.511 billion, with the benefiting states receiving N184.388 billion as the 13 per cent derivation component.

VAT revenue

FAAC also distributed N773.233 billion in VAT revenue.

The Federal Government received N77.323 billion, while state governments received the largest share of N425.278 billion.

Local government councils received N270.632 billion from the VAT allocation.

Total revenue available

According to the statement, a total gross revenue of N3.685 trillion accrued to the Federation Account in August.

However, N125.142 billion was deducted as the cost of collection, while N1.221 trillion was deducted for transfers, refunds and savings, leaving N2.338 trillion available for distribution.

Statutory revenue stood at N2.850 trillion in August, representing a sharp decline from the N4.359 trillion recorded in July.

The August figure was therefore N1.508 trillion lower than the statutory revenue available in the preceding month.

VAT revenue, however, recorded an increase.

A gross N834.843 billion was generated from VAT in August, compared with N793.968 billion in July, representing an increase of N40.875 billion.

Changes in revenue sources

The FAAC communiqué also reported mixed performances across the government's major revenue sources during the month.

Petroleum Profit Tax, Hydrocarbon Tax, VAT, Customs and Excise Duty-related revenues recorded significant increases in August.

On the other hand, revenue from Companies Income Tax, Capital Gains Tax, Stamp Duty Tax, Petroleum Royalties, Mineral Royalties, Gas Flared Penalty, Import Duty, Rental Gas Flared Fee and Miscellaneous Oil Revenue declined considerably.

The latest allocation comes as the three tiers of government continue to rely heavily on monthly FAAC distributions to fund public expenditure, including salaries, infrastructure and other government obligations.