By Chibuzor Alli
Nigeria’s three tiers of government shared N2.338tn in September from revenue generated in August, a 22.2 per cent decline from the record N3.007tn distributed at the previous month’s Federation Account Allocation Committee (FAAC) meeting.
The amount was shared by the Federal Government, the 36 states and the 774 local government councils at the September FAAC meeting held in Abuja, according to a statement issued on Thursday by the Office of the Accountant-General of the Federation.
The latest distribution was N669bn lower than the N3.007tn shared in August from revenue generated in July.
The PUNCH had reported that the July allocation was the highest monthly FAAC distribution recorded in 2026 and the largest in reviewed records dating back to 2019.
The Director of Press and Public Relations at the OAGF, Bawa Mokwa, said, “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.”
Statutory revenue falls by N1.5tn
The reduction in the funds available for distribution was largely driven by a sharp fall in statutory revenue.
FAAC data showed that gross statutory revenue declined by N1.508tn, or 34.6 per cent, to N2.850tn in August from N4.359tn in July.
“Gross statutory revenue of N2.850tn was received for the month of August 2026. This was lower than the sum of N4.359tn received in the preceding month by N1.508tn,” the statement read.
The August decline came after a strong increase in statutory revenue in July, when collections rose by N658.09bn from N3.700tn in June to N4.359tn.
VAT collections rise despite overall revenue decline
Value Added Tax collections moved in the opposite direction, increasing by N40.88bn during August.
Gross VAT revenue reached N834.843bn, up 5.1 per cent from the N793.968bn recorded in July.
The statement said, “Gross revenue of N834.843bn was available from the Value Added Tax in August 2026. This was higher than the N793.968bn available in the month of July 2026 by N40.875bn.”
Overall, N3.685tn in gross revenue was available for August.
Of this amount, N125.142bn was deducted as the cost of collection, while N1.221tn was used for transfers, refunds and savings.
After the deductions, N2.338tn was available for distribution. This consisted of N1.565tn in distributable statutory revenue and N773.233bn in distributable VAT.
Federal Government receives N804.9bn
The Federal Government received N804.897bn from the total allocation, while the 36 states received N794.313bn.
The 774 local government councils received N555.142bn, while N184.388bn was paid to benefiting states as derivation revenue, representing 13 per cent of mineral revenue.
From the N1.565tn distributable statutory revenue, the Federal Government received N727.573bn, states received N369.035bn and local governments received N284.511bn.
A further N184.388bn was allocated to benefiting states as derivation revenue.
From the N773.233bn distributable VAT revenue, the Federal Government received N77.323bn, while the states received N425.278bn and local governments got N270.632bn.
Major revenue sources record mixed results
The FAAC communiqué showed that the performance of the major revenue streams was mixed in August.
Petroleum Profit Tax, Hydrocarbon Tax, VAT, Common External Tariff levies and excise duty recorded significant increases during the month.
However, Companies Income Tax, Capital Gains Tax, Stamp Duties Tax, petroleum royalties, mineral royalties, gas-flared penalties, import duty, rental gas-flared fees and miscellaneous oil revenue recorded considerable declines.
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