August Revenue Drops As FG, States, LGAs Share N2.338tn

The Federal Government, states and local government councils shared N2.338 trillion from the Federation Account in August 2026, amid a sharp decline in statutory revenue.

The figure was announced at the September meeting of the Federation Account Allocation Committee (FAAC) held in Abuja.

A statement signed by the Director of Press and Public Relations at the Office of the Accountant-General of the Federation, Bawa Mokwa, said the total distributable revenue comprised N1.565 trillion in statutory revenue and N773.233 billion from Value Added Tax (VAT).

According to the statement, the Federation Account recorded gross revenue of N3.685 trillion during the month.

However, deductions for the cost of revenue collection amounted to N125.142 billion. Transfers, refunds and savings accounted for another N1.221 trillion.

The decline in statutory revenue stood out in the August figures.

Gross statutory revenue fell to N2.850 trillion from N4.359 trillion recorded in July. The drop represents a decrease of N1.508 trillion within one month.

VAT revenue, however, recorded an increase during the same period.

Gross VAT revenue rose to N834.843 billion in August from N793.968 billion in July, representing an increase of N40.875 billion.

From the N2.338 trillion distributable revenue, the Federal Government received N804.897 billion.

The 36 state governments received N794.313 billion, while the local government councils got N555.142 billion.

The benefiting states also received N184.388 billion as derivation revenue. The amount represents 13 per cent of mineral revenue.

A breakdown of the N1.565 trillion statutory revenue showed that the Federal Government received N727.573 billion.

The state governments received N369.035 billion, while the local government councils received N284.511 billion.

The benefiting states received a further N184.388 billion as derivation revenue from mineral resources.

From the N773.233 billion distributable VAT revenue, the Federal Government received N77.323 billion.

The states received N425.278 billion, while the local government councils received N270.632 billion.

The revenue performance reflected mixed movements across the different sources that contribute to the Federation Account.

The statement said Petroleum Profit Tax, Hydrocarbon Tax and VAT recorded significant increases during August.

Customs and Excise Duty levies also increased during the period.

On the other hand, Companies Income Tax, Capital Gains Tax and Stamp Duty recorded considerable declines.

Petroleum royalties and mineral royalties also fell, alongside revenue from gas-flaring penalties.

Import duties, rental gas-flaring fees and miscellaneous oil revenue equally recorded declines during the month.

The latest figures underline the changing contribution of the various revenue sources to the Federation Account, with the rise in VAT partly offsetting the decline in statutory earnings.