The Federation Account Allocation Committee (FAAC) has shared N2.33 trillion among the Federal Government, the 36 state governments and the 774 local government councils, following a steep fall in gross federation revenue.
The committee, at its September meeting chaired by the Accountant-General of the Federation, Shamseeldeen Ogunjimi, said gross revenue dropped by 34.62 per cent from N4.359 trillion in July to N2.850 trillion in August 2026.
According to a communique issued after the meeting in Abuja and made public by the Director of Press and Public Relations at the Office of the Accountant-General of the Federation, Bawa Mokwa, the decline was driven by lower collections from Companies Income Tax/Capital Gains Tax, Stamp Duty Tax, Petroleum Royalties, Mineral Royalties, Gas Flared Penalty, Import Duty, Rental, Gas Flared Fee and Miscellaneous Oil Revenue.
From the N2.33 trillion shared, the Federal Government received N804.897 billion, the state governments got N794.313 billion, while the local government councils received N555.142 billion. Oil-producing states received N184.388 billion as derivation, representing 13 per cent of mineral revenue.
A closer look at the distribution shows the committee handled two main streams: statutory revenue and Value Added Tax.
From the statutory account, a total of N1.565 trillion was distributable. The Federal Government took N727.573 billion, states received N369.035 billion, local governments got N284.511 billion, while derivation accounted for N184.388 billion.
The VAT pool, which stood at N773.233 billion, was shared differently. The Federal Government received N77.323 billion, states got the largest share at N425.278 billion, and local governments received N270.632 billion.
In all, gross revenue available to the committee was N3.685 trillion. Of that, N125.142 billion was deducted as cost of collection, while N1.221 trillion went for transfers, refunds and savings before the final distributable amount was arrived at.
While gross statutory revenue fell sharply to N2.850 trillion, gross VAT revenue actually rose to N834.843 billion, up from N793.968 billion in July.
Revenue heads that recorded increases included Petroleum Profit Tax, Hydrocarbon Tax, VAT, CET Levies and Excise Duty. The ones that declined were Companies Income Tax/Capital Gains Tax, Stamp Duty Tax, Petroleum Royalties, Mineral Royalties, Gas Flared Penalty, Import Duty, Rental, Gas Flared Fee and Miscellaneous Oil Revenue.
The month-on-month swing of more than N1.5 trillion in gross revenue highlights how exposed the federation account remains to fluctuations in oil receipts and tax collections. For states and local governments that depend on FAAC allocations to pay salaries and fund basic services, the drop means a leaner month ahead.
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