Business and Economy
FAAC shares ₦2.338trn as statutory revenue plunges in August.
Nigeria’s three tiers of government shared a total of ₦2.338 trillion in Federation Account revenue for August 2026, despite a sharp decline in statutory revenue compared with the previous month.
The allocation was announced following the September meeting of the Federation Account Allocation Committee (FAAC) in Abuja.
The distributable revenue comprised ₦1.565 trillion in statutory revenue and ₦773.233 billion from Value Added Tax (VAT).
The figures showed a significant decline in gross statutory revenue, which fell to ₦2.850 trillion in August from ₦4.359 trillion recorded in July, representing a decrease of about ₦1.508 trillion.
VAT, however, recorded an increase, with gross VAT revenue rising to ₦834.843 billion, up by ₦40.875 billion from the ₦793.968 billion recorded in July.
Of the ₦2.338 trillion shared among the three tiers, the Federal Government received ₦804.897 billion, while the 36 states received ₦794.313 billion.
Local Government Councils received ₦555.142 billion, while ₦184.388 billion, representing 13 per cent derivation revenue from mineral resources, was allocated to benefiting states.
A breakdown of the statutory allocation showed that the Federal Government received ₦727.573 billion, states received ₦369.035 billion, and local governments got ₦284.511 billion.
The benefiting states also received the ₦184.388 billion derivation component.
From the ₦773.233 billion VAT pool, the Federal Government received ₦77.323 billion, states received ₦425.278 billion, while local governments received ₦270.632 billion.
FAAC disclosed that total gross revenue available for the month stood at ₦3.685 trillion, while ₦125.142 billion was deducted as the cost of collection.
A further ₦1.221 trillion was recorded as transfers, refunds and savings before the distributable balance was shared.
Revenue performance reflected mixed movements across major sources.
Petroleum Profit Tax, Hydrocarbon Tax, VAT, Customs and Excise-related revenues recorded increases, while Companies Income Tax, Capital Gains Tax, Stamp Duty Tax, petroleum and mineral royalties, gas-flaring penalties, import duties and other oil-related revenues declined.
The August figures highlight the continued volatility of federally collected revenue, as the sharp contraction in statutory receipts was partly offset by stronger VAT collections.