Nigeria’s Federation Account Allocation Committee (FAAC) has distributed N2.338 trillion from August 2026 revenue among the Federal Government, state governments and local councils.
Bawa Mokwa, Director of Press and Public Relations at the Office of the Accountant-General of the Federation, disclosed the allocation in a statement issued on Thursday. The distribution was approved at FAAC’s September 2026 meeting in Abuja.
Revenue pool and deductions
The distributable amount consisted of N1.565 trillion in statutory revenue and N773.233 billion generated through Value Added Tax (VAT).
Gross revenue available for August stood at N3.685 trillion. From that amount, N125.142 billion was deducted as collection costs, while transfers, refunds and savings accounted for a further N1.221 trillion.
Gross statutory receipts fell to N2.850 trillion in August from N4.359 trillion in July, a month-on-month decline of N1.508 trillion.
VAT revenue moved in the opposite direction. Gross VAT receipts reached N834.843 billion in August, up N40.875 billion from the N793.968 billion recorded in July 2026.
Allocation to the three tiers of government
Of the N2.338 trillion available for distribution, the Federal Government received N804.897 billion, while the states collectively received N794.313 billion. Local government councils were allocated N555.142 billion. In addition, beneficiary states received N184.388 billion as derivation revenue, representing 13% of mineral revenue.
Statutory revenue
From the N1.565 trillion statutory revenue pool, N727.573 billion went to the Federal Government and N369.035 billion to the state governments.
Local councils received N284.511 billion from this category, while the benefiting states were allocated N184.388 billion in the 13% mineral-revenue derivation payment.
Value Added Tax
Of the N773.233 billion distributed from VAT, the Federal Government received N77.323 billion. State governments obtained N425.278 billion, and local government councils received N270.632 billion.
Changes in revenue sources
During August 2026, receipts from Petroleum Profit Tax, Hydrocarbon Tax, VAT, Customs and Excise Tax levies, and Excise Duty recorded significant increases.
Revenue from Companies Income Tax, Capital Gains Tax, Stamp Duty Tax, petroleum royalties, mineral royalties, gas-flaring penalties, import duty, rental gas-flaring fees and miscellaneous oil income declined substantially.
