FAAC: FG, States, LGs share N2.338trn in August amist revenue shortfall

By Onu Okorie

Federal Government, state governments and Local Government Councils have shared a total of N2.338 trillion as Federation Account revenue for August 2026.
This was part of the communiqué signed on Thursday by Bawa Mokwa, Director, Press and Public Relations, Office of the Accountant General of the Federation.
The revenue was shared at the September 2026 meeting of the Federation Account Allocation Committee FAAC, held in Abuja.
According to the communiqué issued after the meeting, the total distributable revenue comprised N1.565 trillion in statutory revenue and N773.233 billion from Value Added Tax (VAT).
The committee said a total gross revenue of N3.685 trillion was available for distribution in August. Of the amount, N125.142 billion was deducted as the cost of collection, while N1.221 trillion was transferred, refunded or saved.
The communiqué disclosed that gross statutory revenue stood at N2.850 trillion in August, representing a decrease of N1.508 trillion from the N4.359 trillion recorded in July.
In contrast, gross revenue from VAT rose to N834.843 billion in August, an increase of N40.875 billion over the N793.968 billion generated in July.
From the N2.338 trillion total distributable revenue, the Federal Government received N804.897 billion, while the state governments received N794.313 billion.
The Local Government Councils received N555.142 billion, while N184.388 billion, representing the 13 per cent derivation from mineral revenue, was distributed to the benefiting states.
A breakdown of the N1.565 trillion distributable statutory revenue showed that the Federal Government received N727.573 billion, while the states received N369.035 billion.
The Local Government Councils received N284.511 billion from the statutory revenue, while the benefiting states received N184.388 billion as derivation revenue.
Similarly, from the N773.233 billion distributable VAT revenue, the Federal Government received N77.323 billion, state governments received N425.278 billion and Local Government Councils received N270.632 billion.
The committee also reported changes in revenue sources during the month under review.
It said Petroleum Profit Tax (PPT), Hydrocarbon Tax (HT), Value Added Tax, Customs and Excise Duty (CET) levies and Excise Duty recorded significant increases in August.
However, Companies Income Tax (CIT), Capital Gains Tax (CGT), Stamp Duty Tax (SDT), Petroleum Royalties, Mineral Royalties, Gas Flared Penalty, Import Duty, Rental Gas Flared Fee and miscellaneous oil revenue recorded considerable declines. .