The Federation Account Allocation Committee (FAAC) has shared a total of ₦2.338 trillion in revenue generated in August 2026 among the Federal Government, the 36 state governments and Local Government Councils.
The allocation was made at the September 2026 meeting of FAAC held in Abuja according to figures contained in the communiqué issued after the meeting.
The total distributable revenue comprised ₦1.565 trillion in statutory revenue and ₦773.233 billion from Value Added Tax (VAT).
How the ₦2.338trn was shared
From the total distributable revenue:
* Federal Government: ₦804.897 billion
* 36 State Governments: ₦794.313 billion
* Local Government Councils: ₦555.142 billion
* 13% Mineral Derivation: ₦184.388 billion to benefiting states
The ₦184.388 billion represents the 13 per cent derivation component of mineral revenue allocated to benefiting states.
Revenue sources and deductions
FAAC reported that ₦3.685 trillion was available as gross revenue for distribution in August.
However, ₦125.142 billion was deducted as the cost of revenue collection, while ₦1.221 trillion was accounted for as transfers, refunds and savings, leaving the ₦2.338 trillion distributable pool.
Gross statutory revenue stood at ₦2.850 trillion representing a decline of ₦1.508 trillion compared with the ₦4.359 trillion recorded in July.
In contrast, gross VAT revenue increased to ₦834.843 billion in August from ₦793.968 billion in July, representing an increase of ₦40.875 billion.
Statutory revenue allocation
Of the ₦1.565 trillion distributable statutory revenue:
* Federal Government received ₦727.573 billion
* State Governments received ₦369.035 billion
* Local Government Councils received ₦284.511 billion
* Benefiting states received ₦184.388 billion as derivation revenue.
From the ₦773.233 billion VAT pool, the Federal Government received ₦77.323 billion**, states received ₦425.278 billion, while Local Government Councils received ₦270.632 billion
Mixed performance across revenue streams
The FAAC communiqué also reported mixed movements across major revenue sources during August.
Petroleum Profit Tax, Hydrocarbon Tax, VAT, Customs and Excise Tariff levies, and Excise Duty recorded significant increases.
However, Companies Income Tax, Capital Gains Tax, Stamp Duty, Petroleum Royalties, Mineral Royalties, Gas Flared Penalty, Import Duty, Rental Gas Flared Fee and Miscellaneous Oil Revenue recorded considerable decline.
The latest allocation highlights the continued importance of Federation Account revenues to the financing of the three tiers of government amid fluctuations in statutory and consumption-based revenue sources.