FAAC
The Federal Government, states and local government councils shared N2.338tn at the September meeting of the Federation Account Allocation Committee, representing a 22.2 per cent decline from the record N3.007tn distributed in the previous month.
The N2.338tn shared at the meeting held in Abuja represents revenue generated in August 2026, according to a statement issued on Thursday by the Office of the Accountant-General of the Federation.
The decline amounted to N669bn compared with the N3.007tn shared at the August FAAC meeting from revenue generated in July.
The PUNCH had reported that the July allocation was the highest monthly FAAC distribution recorded in 2026 and the largest in reviewed records dating back to 2019.
The statement by the Director of Press and Public Relations in the OAGF, Bawa Mokwa, read, “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.”
The decline in the amount available for distribution followed a sharp drop in statutory revenue.
According to the FAAC communiqué, gross statutory revenue fell by N1.508tn, or 34.6 per cent, to N2.850tn in August from N4.359tn in July.
“Gross statutory revenue of N2.850tn was received for the month of August 2026. This was lower than the sum of N4.359tn received in the preceding month by N1.508 trillion,” the statement read.
The decline reversed the significant increase recorded in July, when gross statutory revenue rose by N658.09bn from N3.700tn in June to N4.359tn.
However, Value Added Tax collections maintained an upward trend, rising by N40.88bn in August.
Gross VAT revenue stood at N834.843bn, representing a 5.1 per cent increase from the N793.968bn recorded in July.
The statement said, “Gross revenue of N834.843bn was available from the Value Added Tax in August 2026. This was higher than the N793.968bn available in the month of July 2026 by N40.875bn.”
In total, N3.685tn in gross revenue was available in August.
From the amount, N125.142bn was deducted as cost of collection, while transfers, refunds and savings gulped N1.221tn.
This left N2.338tn for distribution among the three tiers of government, comprising N1.565tn in distributable statutory revenue and N773.233bn in distributable VAT.
A breakdown of the allocation showed that the Federal Government received N804.897bn, while the 36 states received N794.313bn.
The 774 local government councils received N555.142bn, while N184.388bn, representing 13 per cent of mineral revenue, was paid to benefiting states as derivation revenue.
From the N1.565tn distributable statutory revenue, the Federal Government received N727.573bn, states got N369.035bn and local governments received N284.511bn.
Another N184.388bn was paid to benefiting states as derivation revenue.
For the N773.233bn distributable VAT revenue, the Federal Government received N77.323bn, states received N425.278bn, while local governments got N270.632bn.
The communiqué also showed mixed performances across the major revenue streams during the month.
It said Petroleum Profit Tax, Hydrocarbon Tax, VAT, Common External Tariff levies and excise duty increased significantly in August.
In contrast, Companies Income Tax, Capital Gains Tax, Stamp Duties Tax, petroleum royalties, mineral royalties, gas-flared penalties, import duty, rental gas-flared fees and miscellaneous oil revenue declined considerably.
