The Federal Government, states and local government councils shared N2.338tn at the September meeting of the Federation Account Allocation Committee (FAAC), representing a 22.2 per cent decline from the N3.007tn distributed in August.
The amount shared at the meeting held in Abuja represents revenue generated in August 2026, according to a statement issued on Thursday by the Office of the Accountant-General of the Federation.
The latest allocation was N669bn lower than the N3.007tn shared at the August FAAC meeting from revenue generated in July.
The decline followed a significant drop in statutory revenue during the month. Gross statutory revenue fell by N1.508tn, or 34.6 per cent, from N4.359tn in July to N2.850tn in August.
The FAAC communiqué stated that the N2.850tn gross statutory revenue received in August was substantially lower than the N4.359tn recorded in the preceding month.
The decline reversed the increase recorded in July, when gross statutory revenue rose by N658.09bn from N3.700tn in June to N4.359tn.
Despite the fall in statutory revenue, Value Added Tax (VAT) collections increased in August.
Gross VAT revenue stood at N834.843bn, representing a N40.875bn, or 5.1 per cent, increase from the N793.968bn recorded in July.
A total of N3.685tn in gross revenue was available for the month. From the amount, N125.142bn was deducted as the cost of collection, while N1.221tn was deducted for transfers, refunds and savings.
After the deductions, N2.338tn was available for distribution among the three tiers of government.
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The distributable revenue comprised N1.565tn in statutory revenue and N773.233bn in VAT.
The Federal Government received N804.897bn, while the 36 states received N794.313bn.
The 774 local government councils received N555.142bn, while N184.388bn was distributed to benefiting states as 13 per cent derivation revenue from mineral resources.
From the N1.565tn distributable statutory revenue, the Federal Government received N727.573bn, states received N369.035bn, while local governments received N284.511bn.
An additional N184.388bn was paid to benefiting states as derivation revenue.
From the N773.233bn distributable VAT revenue, the Federal Government received N77.323bn, states received N425.278bn, while local governments received N270.632bn.
The communiqué also reported mixed performances across the major revenue streams in August.
Petroleum Profit Tax, Hydrocarbon Tax, VAT, Common External Tariff levies and excise duty recorded increases during the month.
However, Companies Income Tax, Capital Gains Tax, Stamp Duties Tax, petroleum royalties, mineral royalties, gas-flaring penalties, import duty, rental gas-flared fees and miscellaneous oil revenue recorded declines.
The latest distribution marks a significant reduction from the previous month’s FAAC allocation, reflecting the impact of the sharp fall in statutory revenue available to the federation in August.