FAAC shares N2.338tn August revenue as allocation drops

The Federal Government, states and local councils shared N2.338tn from August 2026 revenue at the September meeting of the Federation Account Allocation Committee, down from the N3.007tn distributed from July revenue.

The Office of the Accountant-General of the Federation said the money comprised N1.565tn in distributable statutory revenue and N773.233bn in Value Added Tax revenue. The Federal Government received N804.897bn, states received N794.313bn, local councils received N555.142bn, while oil-producing states received N184.388bn as 13 per cent derivation.

The lower payout followed a sharp fall in gross statutory revenue. Punch reported that statutory revenue dropped to N2.850tn in August from N4.359tn in July, a decline of about N1.508tn. Daily Post also reported total gross revenue of N3.685tn for August, with deductions for collection costs and transfers, refunds and savings taking N1.346tn before distribution.

VAT collections moved in the other direction. The FAAC communiqué put gross VAT revenue at N834.843bn in August, up from N793.968bn in July.

The latest distribution gives federal, state and local governments less cash than the previous month, even as VAT receipts rose. It also follows July’s unusually high allocation, which Punch reported as the largest monthly distribution recorded in 2026.

Sources: Punch, Daily Post