By: Ganiyu Olayinka
Federal, state and local government coffers took a hit in September’s Federation Account Allocation Committee (FAAC) meeting, with the three tiers sharing ₦2.338 trillion amounting to 22.2 per cent drop from the record ₦3.007 trillion distributed the previous month.
The figure, representing revenue generated in August 2026, was confirmed in a statement issued Thursday by the Office of the Accountant-General of the Federation (OAGF). The ₦669 billion decline follows what had been the highest monthly FAAC payout of 2026, and reportedly the largest in records reviewed back to 2019.
“A total sum of N2.338tn, being August 2026 Federation Account Revenue, has been shared to the Federal Government, States and the Local Government Councils,” OAGF Director of Press and Public Relations Bawa Mokwa said in the statement.
Statutory Revenue Takes a Sharp Hit
The main driver of the decline was a steep fall in statutory revenue, which dropped by ₦1.508 trillion; 34.6 per cent to ₦2.850 trillion in August, down from ₦4.359 trillion in July. That reverses a sizeable jump the month before, when statutory revenue had climbed by ₦658.09 billion from ₦3.700 trillion in June.
VAT Bucks the Trend
Not every revenue line fell. Value Added Tax collections kept climbing, rising by ₦40.88 billion to reach ₦834.843 billion in August; a 5.1 per cent increase from July’s ₦793.968 billion.
How the Money Was Split
Gross revenue available for August totalled ₦3.685 trillion. After deducting ₦125.142 billion for cost of collection and setting aside ₦1.221 trillion for transfers, refunds and savings, ₦2.338 trillion remained for distribution which made up of ₦1.565 trillion in distributable statutory revenue and ₦773.233 billion in distributable VAT.
The breakdown by tier of government showed:
- Federal Government: ₦804.897 billion
- 36 states: ₦794.313 billion
- 774 local government councils: ₦555.142 billion
- Derivation revenue (13% of mineral revenue) to benefiting states: ₦184.388 billion
Within the ₦1.565 trillion distributable statutory revenue, the Federal Government took ₦727.573 billion, states received ₦369.035 billion, and local governments got ₦284.511 billion, with a further ₦184.388 billion going to benefiting states as derivation revenue.
On the VAT side, of the ₦773.233 billion distributed, the Federal Government received ₦77.323 billion, states got the lion’s share at ₦425.278 billion, and local governments received ₦270.632 billion.
A Mixed Bag Across Revenue Lines
The FAAC communiqué pointed to uneven performance across individual revenue streams during the month. Petroleum Profit Tax, Hydrocarbon Tax, VAT, Common External Tariff levies and excise duty all posted notable increases. On the other side of the ledger, Companies Income Tax, Capital Gains Tax, Stamp Duties Tax, petroleum and mineral royalties, gas-flared penalties, import duty, rental gas-flared fees and miscellaneous oil revenue all declined significantly.
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