FAAC: Three Tiers Share N2.338trn, VAT Revenue Climbs by N40.9bn

The Federal Government, the 36 state governments and the 774 local government councils have shared a total of N2.338 trillion from revenue generated in August 2026.

The allocation was approved at the September 2026 meeting of the Federation Account Allocation Committee (FAAC), held in Abuja.

The figure was disclosed 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 details released after the meeting, the total distributable revenue comprised N1.565 trillion in statutory revenue and N773.233 billion from Value Added Tax (VAT).

FAAC said gross revenue of N3.685 trillion was generated during the month under review, out of which N125.142 billion was deducted as the cost of revenue collection, while N1.221 trillion was accounted for as transfers, refunds and savings.

The committee reported that statutory revenue fell to N2.850 trillion in August, representing a decline of N1.508 trillion from the N4.359 trillion recorded in July.

VAT revenue, however, recorded an increase during the period, rising from N793.968 billion in July to N834.843 billion in August, representing an increase of N40.875 billion.

Of the N2.338 trillion shared, the Federal Government received N804.897 billion, while the states received N794.313 billion and local government councils got N555.142 billion.

The benefiting states also received N184.388 billion as the 13 per cent derivation revenue from mineral resources.

A breakdown of the statutory revenue showed that the Federal Government received N727.573 billion, states got N369.035 billion, while local government councils received N284.511 billion. The N184.388 billion derivation allocation was also paid to the relevant states.

From the VAT revenue, the Federal Government received N77.323 billion, while the states received N425.278 billion and local government councils got N270.632 billion.

FAAC also reported mixed performances across the various revenue sources in August.
Petroleum Profit Tax, Hydrocarbon Tax, VAT, Customs and Excise Duty recorded increases, while revenue from Companies Income Tax, Capital Gains Tax, Stamp Duty, Petroleum Royalties, Mineral Royalties and some other oil-related sources declined.

The latest allocation is expected to enable the three tiers of government to meet their financial obligations and fund public programmes, projects and other development activities.