FG, States, LGs Share N2.34tn As Revenue Falls

The Federal Government, states and local government councils shared N2.338tn at the September 2026 meeting of the Federation Account Allocation Committee, representing a 22.2 per cent decline from the N3.007tn distributed in August.

The N2.338tn September FAAC allocation was generated from revenue collected in August 2026, according to a statement issued by the Office of the Accountant-General of the Federation.

The latest allocation was N669bn lower than the N3.007tn shared at the previous FAAC meeting from revenue generated in July.

The decline was largely driven by a sharp reduction in statutory revenue. Gross statutory revenue fell by N1.508tn, representing a 34.6 per cent decrease from N4.359tn in July to N2.850tn in August.

The OAGF said the N2.850tn statutory revenue received in August was significantly lower than the amount recorded in the preceding month.

The decline in statutory revenue reversed the increase recorded in July, when gross statutory revenue rose by N658.09bn from N3.700tn in June to N4.359tn.

Despite the overall decline, Value Added Tax revenue recorded an increase during the month. Gross VAT revenue rose by N40.875bn to N834.843bn in August, representing a 5.1 per cent increase from the N793.968bn recorded in July.

In total, N3.685tn in gross revenue was available for the August allocation. From the amount, N125.142bn was deducted as the cost of collection, while N1.221tn went to transfers, refunds and savings.

After the deductions, N2.338tn was available for distribution among the three tiers of government. This comprised N1.565tn in distributable statutory revenue and N773.233bn in distributable VAT revenue.

The Federal Government received N804.897bn from the total distributable revenue, while the 36 states received N794.313bn. The 774 local government councils received N555.142bn.

Benefiting states also received N184.388bn as derivation revenue, representing 13 per cent of mineral revenue.

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 and local governments received N270.632bn.

The FAAC communiqué also recorded mixed performances across major revenue sources in August. Petroleum Profit Tax, Hydrocarbon Tax, VAT, Common External Tariff levies and excise duty recorded increases.

However, Companies Income Tax, Capital Gains Tax, Stamp Duties Tax, petroleum royalties, mineral royalties, gas-flaring penalties, import duty, rental gas-flaring fees and miscellaneous oil revenue recorded declines.

The September FAAC allocation therefore marked a significant reduction from the record distribution of the previous month, with the fall in statutory revenue outweighing the increase recorded in VAT collections.