BY COBHAM NSA – The Federal Government, state governments and the 774 local government councils have shared a massive ₦2.338 trillion in distributable revenue for the month of August 2026.
The Federation Account Allocation Committee (FAAC) greenlit the multi-trillion Naira disbursement during its September meeting in Abuja, according to a communiqué released by both the Federal Ministry of Finance and the Office of the Accountant-General of the Federation (OAGF).
According to the communique, the cash injection into Nigeria’s three tiers’ accounts was fueled primarily by the statutory revenue contributed lion’s share of ₦1.565 trillion, further bolstered by an additional ₦773.233 billion from Value Added Tax (VAT) accruals.
The shared amount represent the majority slice of a bumper month for the nation’s coffers, with FAAC disclosing that the total distributable pool was carved out of a massive ₦3.685 trillion in total gross revenue raked in by the federation for August. This is as the sum of ₦125.142 billion was deducted as cost of collection, with ₦1.221 trillion also set aside to cover transfers, refunds and savings before the balance was distributed.
A breakdown of the numbers reveals that under the revenue-sharing formula, the Federal Government received ₦804.897 billion, the 36 states received ₦794.313 billion, and the 774 local government councils got ₦555.142 billion, while oil-producing states pocketed ₦184.388 billion as 13 per cent derivation from mineral revenue.
From the statutory revenue, the Federal Government kept ₦727.573 billion, states received ₦369.035 billion, local governments councils got ₦284.511 billion, while ₦184.388 billion went to benefiting states as derivation revenue.
Additionally, the ₦773.233 billion VAT revenue was shared as follows, the Federal Government got ₦77.323 billion, state governments received ₦425.278 billion, while local governments councils smiled home with ₦270.632 billion.
However, looking critically at the books, FAAC reported a sharp decline in statutory revenue for the month, noting that total gross statutory revenue dipped to ₦2.850 trillion in August, compared to the ₦4.359 trillion figure recorded in July, representing a drop of about ₦1.508 trillion.
The Communique stated that in contrast, VAT collections recorded a surge during the period as the gross figure moved to ₦834.843 billion in August as against the sum of ₦793.968 billion that accrued in July, representing ₦40.875 billion increase.
Also, the latest figures indicated that inflows from high-yielding sectors, including Petroleum Profit Tax (PPT), Hydrocarbon Tax (HT), and Value Added Tax (VAT), along with Common External Tariff (CET) Levies and Excise Duty, recorded significant increases, with the communique explaining that these gains injected critical liquidity into government coffers during the month under review.
Conversely, the overall numbers were pulled down by a widespread slowdown across other vital economic sectors with the report showing that collections from Companies Income Tax (CIT), Capital Gains Tax (CGT), Stamp Duties, and various mining and import streams, including Mineral and Petroleum Royalties, Gas Flared Penalties, and Miscellaneous Oil Revenue, dropped considerably during the month.
