FG, States, LGAs share N2.338trn August revenue

From Adanna Nnamani, Abuja

The Federal Government, 36 states and the 774 Local Government Councils have shared a total of N2.338 trillion as Federation Account revenue for August 2026.

The revenue was shared at the September 2026 meeting of the Federation Account Allocation Committee (FAAC), held in Abuja.

The N2.338 trillion total distributable revenue comprised N1.565 trillion in distributable statutory revenue and N773.233 billion from Value Added Tax (VAT).

According to the communiqué issued at the meeting, a total gross revenue of N3.685 trillion was available for distribution in August, while N125.142 billion was deducted as cost of collection. A further N1.221 trillion was deducted for transfers, refunds and savings.

The communiqué stated that gross statutory revenue stood at N2.850 trillion in August, representing a decline of N1.508 trillion from the N4.359 trillion recorded in July.

In contrast, gross VAT revenue increased to N834.843 billion in August, up by N40.875 billion from the N793.968 billion recorded in July.

From the N2.338 trillion total distributable revenue, the Federal Government received N804.897 billion, while the states received N794.313 billion.

The Local Government Councils received N555.142 billion, while N184.388 billion, representing 13 per cent of mineral revenue, was shared as derivation revenue to the benefiting states.

A breakdown of the N1.565 trillion distributable statutory revenue showed that the Federal Government received N727.573 billion, states received N369.035 billion and Local Government Councils received N284.511 billion.

The benefiting states also received N184.388 billion as 13 per cent derivation revenue from mineral resources.

From the N773.233 billion distributable VAT revenue, the Federal Government received N77.323 billion, states received N425.278 billion, while Local Government Councils received N270.632 billion.

The communiqué attributed the changes in revenue performance to movements in various revenue streams.

It stated that Petroleum Profit Tax, Hydrocarbon Tax, VAT, Customs and Excise Duties increased significantly in August, while 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 declined considerably.