August: FAAC Shares N2.58trn to FG, States, LGs as Statutory Revenue Falls by N1.5trn

August: FAAC Shares N2.58trn to FG, States, LGs as Statutory Revenue Falls by N1.5trn

By Raphael Ekpang

Abuja (Core Reporters)-The Federation Account Allocation Committee (FAAC) has shared a total of N2.58 trillion among the three tiers of government as Federation Account allocation at its September 2026 meeting.

The meeting, chaired by the Accountant-General of the Federation, Mr Shamseeldeen Ogunjimi, distributed the funds from Gross Statutory Revenue and Value Added Tax (VAT), among other components.

From the distributable revenue, the Federal Government received N804.897 billion, the States received N794.313 billion, while the Local Government Councils (LGCs) received N555.142 billion.

An additional N184.388 billion was shared as derivation revenue to oil-producing states, representing the constitutionally prescribed 13 per cent of mineral revenue.

The committee also deducted N125.142 billion as cost of collection, while N1.221 trillion was allocated for Transfers, Intervention and Refunds.

VAT Revenue

According to the communiqué issued at the end of the meeting, gross revenue from Value Added Tax (VAT) for August 2026 stood at N834.843 billion, compared with N793.968 billion recorded in the preceding month.

This represents an increase of N40.875 billion in gross VAT revenue.

Of the VAT revenue, N100.545 billion was deducted as cost of collection, while N1.184 trillion was allocated for Transfers, Intervention and Refunds.

The balance of N733.233 billion was distributed among the three tiers of government.

The Federal Government received N77.323 billion, States received N425.278 billion, while the Local Government Councils received N270.632 billion.

Statutory Revenue Falls

The Gross Statutory Revenue for August 2026 stood at N2.850 trillion, representing a significant decline from the N4.359 trillion recorded in the preceding month. The figure represents a decrease of N1.509 trillion.

From the Gross Statutory Revenue, N24.597 billion was deducted for the cost of collection, while N37.014 billion was allocated for Transfers, Intervention and Refunds.

The remaining N1.565 trillion was distributed among the three tiers of government.

The Federal Government received N727.573 billion, the States received N369.035 billion, while the Local Government Councils received N284.511 billion.

In addition, N184.388 billion was distributed as derivation revenue to mineral-producing states, representing 13 per cent of mineral revenue.

Revenue Performance

The FAAC communiqué indicated that revenue from Petroleum Profit Tax (PPT), Hydrocarbon Tax (HT), Value Added Tax (VAT), Customs and Excise Duties (CET) levies, and Excise Duty recorded significant increases during the period under review.

However, revenue from Companies Income Tax/Capital Gains Tax (CIT/CGT), Stamp Duty Tax (SDT), Petroleum Royalties, Mineral Royalties, Gas Flared Penalty, Import Duty, Rental, Gas Flared Fee and Miscellaneous Oil Revenue recorded considerable decreases.

The communiqué stated that the total revenue distributable for August 2026 was drawn from N1.565 trillion in Statutory Revenue and N773.233 billion in VAT, bringing the total distributable revenue to N2.338 trillion.