The Federation Account Allocation Committee (FAAC) has disbursed N2.338 trillion to the Federal Government, states and local government councils as August 2026 revenue. This latest FAAC allocation to states was disclosed in a statement on Thursday by the Director of Press and Public Relations at the Office of the Accountant-General of the Federation, Bawa Mokwa.
According to the statement, N2.338 trillion was shared among the three tiers of government at the September 2026 FAAC meeting held in Abuja. The total distributable revenue comprised N1.565 trillion in distributable statutory revenue and N773.233 billion in distributable Value Added Tax (VAT) revenue.
A total gross revenue of N3.685 trillion was available for August 2026, but after deductions of N125.142 billion for the cost of collection and total transfers, refunds, and savings amounting to N1.221 trillion, the balance left for sharing came down to N2.338 trillion.
Interestingly, gross statutory revenue for the month stood at N2.850 trillion, a sharp drop of N1.508 billion compared to the N4.359 trillion recorded in July. VAT revenue, however, moved in the opposite direction, rising to N834.843 billion from N793.968 billion the previous month, an increase of N40.875 billion.
Breaking down the latest FAAC allocation to states, the Federal Government pocketed N804.897 billion, while state governments got N794.313 billion. Local government councils received N555.142 billion, and oil-producing states shared N184.388 billion as 13 percent derivation revenue.
From the N1.565 trillion distributable statutory revenue, the Federal Government took N727.573 billion, states received N369.035 billion, and LGs got N284.511 billion, alongside the N184.388 billion derivation fund for benefiting states.
On the VAT side, the Federal Government received N77.323 billion, states got N425.278 billion, while local councils received N270.632 billion.
The report also noted that revenue sources like Petroleum Profit Tax, Hydrocarbon Tax, VAT, CET levies and Excise Duty rose significantly in August, while others such as Companies Income Tax, Capital Gains Tax, Stamp Duty, Petroleum and Mineral Royalties, Import Duty and Miscellaneous Oil Revenue recorded notable declines.
The Backstory: How FAAC Allocations Work and Why It Matters to Nigerians
FAAC meetings are held monthly in Abuja, bringing together federal and state finance commissioners to review and share revenue generated by the country in the previous month. This includes earnings from oil, VAT, customs duties, and other government revenue sources.
The FAAC allocation to states is a critical lifeline for many state governments, some of which depend heavily on it to run governance, pay salaries and execute projects, especially states with limited internally generated revenue.
Fluctuations in monthly allocations, like the drop seen in statutory revenue this August, often reflect broader shifts in oil production, global crude prices, or tax collection efficiency, and they directly affect how much states have to work with each month.
