WorldStage— The Federal Government, states and local government councils shared a total of N2.338 trillion from the August 2026 Federation Account revenue, with statutory revenue declining sharply while Value Added Tax (VAT) receipts increased month-on-month.
The revenue was shared at the September 2026 meeting of the Federation Account Allocation Committee (FAAC) held in Abuja.
The N2.338 trillion distributable revenue comprised N1.565 trillion statutory revenue and N773.233 billion Value Added Tax (VAT) revenue, according to the communiqué issued after the meeting.
The total gross revenue available for distribution in August stood at N3.685 trillion, while N125.142 billion was deducted as cost of collection. A further N1.221 trillion was deducted for transfers, refunds and savings.
The communiqué showed that gross statutory revenue fell to N2.850 trillion in August, representing a decline of N1.508 trillion or about 34.6 per cent from the N4.359 trillion recorded in July 2026.
In contrast, gross VAT revenue increased to N834.843 billion in August from N793.968 billion in July, representing a month-on-month increase of N40.875 billion or about 5.1 per cent.
Of the N2.338 trillion total distributable revenue, the Federal Government received N804.897 billion, while the state governments received N794.313 billion.
The local government councils received N555.142 billion, while N184.388 billion, representing 13 per cent of mineral revenue, was distributed to benefiting states as derivation revenue.
A breakdown showed that from the N1.565 trillion distributable statutory revenue, the Federal Government received N727.573 billion, states received N369.035 billion, while local governments received N284.511 billion. The benefiting states also received N184.388 billion as derivation revenue.
From the N773.233 billion distributable VAT revenue, the Federal Government received N77.323 billion, state governments received N425.278 billion, while local government councils received N270.632 billion.
The FAAC communiqué attributed the changes in revenue performance to movements across major revenue sources.
It stated that Petroleum Profit Tax (PPT), Hydrocarbon Tax (HT), VAT, CET levies and Excise Duty recorded significant increases during the month.
However, Companies Income Tax (CIT), Capital Gains Tax (CGT), Stamp Duty Tax (SDT), Petroleum Royalties, Mineral Royalties, Gas Flared Penalty, Import Duty, Rental Gas Flared Fee and Miscellaneous Oil Revenue recorded considerable declines.
The latest allocation highlights the volatility of Nigeria’s federation revenue, particularly the sharp month-on-month contraction in statutory receipts despite the increase recorded in VAT collections.
The figures were contained in the statement issued by the Office of the Accountant-General of the Federation and signed by Bawa Mokwa, Director, Press and Public Relations.
