FAAC shares ₦2.338trn August revenue to FG, States, LGs

By Mariam Abeeb

The Federation Account Allocation Committee (FAAC) has shared a total of ₦2.338 trillion as distributable revenue for August 2026 among the Federal Government, state governments and the 774 local government councils.

The allocation was approved at the FAAC meeting held in Abuja in September, according to a communiqué issued by the Office of the Accountant-General of the Federation.

The distributable revenue comprised ₦1.565 trillion from statutory revenue and ₦773.233 billion from Value Added Tax (VAT).

FAAC disclosed that total gross revenue available in August stood at ₦3.685 trillion.

From the gross revenue, ₦125.142 billion was deducted as cost of collection, while ₦1.221 trillion was set aside for transfers, refunds and savings before the balance was distributed.

Under the revenue-sharing formula, the Federal Government received ₦804.897 billion, while the 36 states received ₦794.313 billion.

The 774 local government councils received ₦555.142 billion, while oil-producing states received ₦184.388 billion as 13 per cent derivation from mineral revenue.

A breakdown of the statutory revenue showed that the Federal Government received ₦727.573 billion, states got ₦369.035 billion, local governments received ₦284.511 billion, while ₦184.388 billion was allocated to benefiting states as derivation revenue.

From the ₦773.233 billion VAT revenue, the Federal Government received ₦77.323 billion, state governments got ₦425.278 billion, while local governments received ₦270.632 billion.

The committee also reported a sharp decline in statutory revenue for the month.

Gross statutory revenue dropped to ₦2.850 trillion in August from ₦4.359 trillion recorded in July, representing a decline of ₦1.508 trillion.

In contrast, VAT collections improved during the period. Gross VAT revenue rose to ₦834.843 billion in August from ₦793.968 billion in July, an increase of ₦40.875 billion.

According to the communiqué, revenue inflows from Petroleum Profit Tax (PPT), Hydrocarbon Tax (HT), Value Added Tax (VAT), CET Levies and Excise Duty recorded significant increases in August.

However, collections from Companies Income Tax (CIT), Capital Gains Tax (CGT), Stamp Duties (SDT), Petroleum Royalties, Mineral Royalties, Import Duty, Gas Flared Penalty, Rental Gas Flared Fee and Miscellaneous Oil Revenue declined considerably during the month.