FAAC ALLOCATION DROPS 22% TO N2.34TN IN AUGUST

The Federal Government, states and local government councils shared N2.338tn in August 2026 Federation Account revenue, representing a 22.2 per cent decline from the record N3.007tn distributed in the previous month.

The latest allocation was announced at the September meeting of the Federation Account Allocation Committee held in Abuja.

According to a statement issued on Thursday by the Office of the Accountant-General of the Federation, the N2.338tn shared represented revenue generated in August 2026.

The amount was N669bn lower than the N3.007tn distributed at the August FAAC meeting from revenue generated in July.

The July allocation had been reported as the highest monthly FAAC distribution recorded in 2026 and the largest in reviewed records dating back to 2019.

The Director of Press and Public Relations in the OAGF, Bawa Mokwa, confirmed that the August revenue had been distributed among the three tiers of government.

The decline in the funds available for distribution was largely linked to a significant fall in statutory revenue during the month.

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 committee said the August figure was N1.508tn lower than the amount received in the preceding month.

The decline reversed the increase recorded in July, when gross statutory revenue had risen by N658.09bn from N3.700tn in June to N4.359tn.

Despite the fall in statutory revenue, Value Added Tax collections continued to increase in August.

Gross VAT revenue rose by N40.875bn to N834.843bn, representing a 5.1 per cent increase from the N793.968bn recorded in July.

In total, N3.685tn in gross revenue was available to the Federation Account in August.

However, N125.142bn was deducted as the cost of revenue collection, while N1.221tn went to transfers, refunds and savings.

After the deductions, N2.338tn was left for distribution among the Federal Government, the 36 states and the 774 local government councils.

The distributable amount consisted of N1.565tn in statutory revenue and N773.233bn in VAT revenue.

A breakdown showed that the Federal Government received N804.897bn, while the 36 states received N794.313bn.

The local government councils received N555.142bn, while N184.388bn, representing 13 per cent of mineral revenue, was distributed to benefiting states as derivation revenue.

From the N1.565tn distributable statutory revenue, the Federal Government received N727.573bn, while the states received N369.035bn and local governments got N284.511bn.

For the N773.233bn distributable VAT revenue, the Federal Government received N77.323bn, states received N425.278bn, while local governments received N270.632bn.

The FAAC communiqué also recorded mixed performances across the major revenue sources in August.

Petroleum Profit Tax, Hydrocarbon Tax, VAT, Common External Tariff levies and excise duty recorded significant increases during the month.

However, 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 recorded declines.