The Federal Government, states and local government councils shared N2.338tn from the Federation Account in September, representing a 22.2 per cent drop from the N3.007tn allocated in August.
The latest disbursement, which came from revenue generated in August 2026, followed the September meeting of the Federation Account Allocation Committee (FAAC) held in Abuja.
The Office of the Accountant-General of the Federation disclosed this in a statement issued on Thursday, putting the reduction at N669bn compared with the previous month.
The N3.007tn distributed in August from July earnings was the highest monthly FAAC allocation recorded in 2026 and the largest in reviewed records dating back to 2019.
The Director of Press and Public Relations in the OAGF, Bawa Mokwa, said, “A total sum of N2.338tn, being August 2026 Federation Account Revenue, has been shared to the Federal Government, States and the Local Government Councils.”
The lower allocation was largely attributed to a sharp reduction in statutory revenue, which fell by N1.508tn, or 34.6 per cent, from N4.359tn in July to N2.850tn in August.
The FAAC communiqué stated, “Gross statutory revenue of N2.850tn was received for the month of August 2026. This was lower than the sum of N4.359tn received in the preceding month by N1.508tn.”
The development reversed the increase recorded in July, when statutory revenue climbed by N658.09bn from N3.700tn in June to N4.359tn.
Value Added Tax (VAT), however, sustained its upward movement, increasing by N40.875bn to N834.843bn in August from N793.968bn in July.
The statement said, “Gross revenue of N834.843bn was available from the Value Added Tax in August 2026. This was higher than the N793.968bn available in the month of July 2026 by N40.875bn.”
In all, N3.685tn in gross revenue accrued during the month. Of the figure, N125.142bn was deducted as the cost of collection, while N1.221tn went to transfers, refunds and savings.
Following the deductions, N2.338tn remained for allocation among the three tiers of government, comprising N1.565tn in distributable statutory revenue and N773.233bn from VAT.
The Federal Government received N804.897bn, while the 36 states got N794.313bn.
The 774 local government councils were allocated N555.142bn, while N184.388bn, representing 13 per cent derivation from mineral revenue, went to benefiting states.
From the N1.565tn statutory revenue available for distribution, the Federal Government received N727.573bn, states N369.035bn and local governments N284.511bn.
Similarly, the N773.233bn distributable VAT was shared, with the Federal Government getting N77.323bn, states N425.278bn and local governments N270.632bn.
The communiqué also recorded varying performances across the major revenue sources in August.
It noted that Petroleum Profit Tax, Hydrocarbon Tax, VAT, Common External Tariff levies and excise duty recorded significant increases during the month.
On the other hand, Companies Income Tax, Capital Gains Tax, Stamp Duties Tax, petroleum royalties, mineral royalties, gas-flared penalties, import duty, rental gas-flared fees and miscellaneous oil revenue witnessed considerable declines.
