ABUJA — The Federal Government, states and local government councils shared N2.338 trillion from August 2026 Federation Account revenue, about 22.2 per cent less than the N3.007 trillion distributed from July revenue at the previous FAAC meeting.
The allocation was approved at the September meeting of the Federation Account Allocation Committee in Abuja.
The decline came as gross statutory revenue fell sharply.
FAAC figures show statutory revenue dropped to N2.850 trillion in August from N4.359 trillion in July — a decline of about N1.508 trillion.
Value Added Tax moved in the opposite direction.
Gross VAT increased to N834.843 billion from N793.968 billion, a rise of about N40.875 billion.
Total gross revenue available for August stood at N3.685 trillion.
Of that amount, N125.142 billion went to cost of collection, while N1.221 trillion was accounted for as transfers, refunds and savings in the current FAAC-linked reporting.
That left N2.338 trillion for distribution, comprising N1.565 trillion in statutory revenue and N773.233 billion in VAT revenue.
Who received what?
The Federal Government received N804.897 billion, while the 36 states received N794.313 billion.
The 774 local government councils received N555.142 billion.
Another N184.388 billion, representing 13 per cent derivation from mineral revenue, went to benefiting states.
FAAC reported increases in Petroleum Profit Tax, Hydrocarbon Tax, VAT, Common External Tariff levies and excise duty during August.
Companies Income Tax, Capital Gains Tax, petroleum and mineral royalties, gas-flared penalties and import duty were among revenue streams reported to have declined.
What the fall means
The lower allocation reduces the amount shared among the three tiers of government compared with the previous month.
But one monthly decline does not, on its own, establish a wider fiscal crisis.
For states and councils that rely heavily on federation transfers, sustained reductions could narrow the money available for salaries, infrastructure and public services. The August figures alone do not establish that such cuts or payment problems have occurred.
The next test will be whether statutory revenue recovers in the following allocation cycle or whether the decline continues.
For now, the verified position is that distributable Federation Account revenue fell substantially from the previous month, mainly alongside a sharp decline in statutory revenue even as VAT collections increased.
