The Federal Government, 36 states and 774 local government councils shared a total of ₦2.338 trillion from August 2026 Federation Account revenue, representing a 22.2 per cent decline from the record ₦3.007 trillion distributed in the previous month.
![](https://thenigerialawyer.com/wp-content/uploads/2026/09/NBBSPIDEL.png")
![](https://thenigerialawyer.com/wp-content/uploads/2026/05/2026-Summer-IDRI-Masterclass.jpg")
The allocation was shared at the September meeting of the Federation Account Allocation Committee held in Abuja, according to a statement issued on Thursday by the Office of the Accountant-General of the Federation.
The ₦2.338 trillion available for distribution was ₦669 billion lower than the ₦3.007 trillion shared at the August FAAC meeting from revenue generated in July.
The July allocation had been the highest monthly FAAC distribution recorded in 2026 and the largest in reviewed records dating back to 2019.
“A total sum of ₦2.338tn, being August 2026 Federation Account Revenue, has been shared to the Federal Government, States and the Local Government Councils,” the Director of Press and Public Relations in the Office of the Accountant-General of the Federation, Bawa Mokwa, said.
The reduction in distributable revenue followed a sharp decline in gross statutory revenue during August.
According to the FAAC communiqué, gross statutory revenue fell by ₦1.508 trillion, or about 34.6 per cent, from ₦4.359 trillion in July to ₦2.850 trillion in August.
“Gross statutory revenue of ₦2.850tn was received for the month of August 2026. This was lower than the sum of ₦4.359tn received in the preceding month by ₦1.508 trillion,” the statement said.
The fall reversed the substantial increase recorded in July, when gross statutory revenue had risen by ₦658.09 billion from ₦3.700 trillion in June to ₦4.359 trillion.
Despite the decline in statutory revenue, Value Added Tax collections continued to rise.
Gross VAT revenue increased by ₦40.875 billion, or about 5.1 per cent, from ₦793.968 billion in July to ₦834.843 billion in August.
“Gross revenue of ₦834.843bn was available from the Value Added Tax in August 2026. This was higher than the ₦793.968bn available in the month of July 2026 by ₦40.875bn,” the statement added.
Overall, a total gross revenue of ₦3.685 trillion was available in August.
From that amount, ₦125.142 billion was deducted as cost of collection, while transfers, refunds and savings accounted for another ₦1.221 trillion.
The deductions left ₦2.338 trillion for distribution among the three tiers of government.
The distributable amount comprised ₦1.565 trillion in statutory revenue and ₦773.233 billion from VAT.
A breakdown showed that the Federal Government received a total of ₦804.897 billion, while the 36 states received ₦794.313 billion.
The 774 local government councils received ₦555.142 billion, while another ₦184.388 billion, representing 13 per cent derivation from mineral revenue, was paid to benefiting states.
From the ₦1.565 trillion distributable statutory revenue, the Federal Government received ₦727.573 billion, the states received ₦369.035 billion, while the local governments received ₦284.511 billion.
Benefiting oil-producing states also received ₦184.388 billion as 13 per cent derivation revenue from the statutory component.
From the ₦773.233 billion distributable VAT revenue, the Federal Government received ₦77.323 billion, states received ₦425.278 billion, while local governments received ₦270.632 billion.
The FAAC communiqué also showed mixed performances across the major revenue-generating streams during August.
Petroleum Profit Tax, Hydrocarbon Tax, VAT, Common External Tariff levies and excise duty recorded significant increases during the month.
However, 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 declined considerably.
The book also examines Nigeria's legal ecosystem, focusing on the LPELR and NBA AI Guidelines. As a bonus, every purchase comes with a FREE eBook titled: How to Use the AI Features in LegalPedia and LawPavilion.
Ohio Books Ltd praises the publication, stating:
"....this is the only Nigerian book I know of on the topic."
How to Order:
📞 Call, Text, or WhatsApp: 08034917063 | 07055285878
📧 Email: benadigwe1@gmail.com
🌎 Website: www.benadigwe.com
Ebook Version: Access it directly online at https://selar.com/prv626
Authored by Ben Ijeoma Adigwe Esq., ACIarb (UK), LL.M, Dip. in Artificial Intelligence, Director at the Delta State Ministry of Justice, Asaba, Nigeria.
_______________________________________________________________________
“Enhance Legal Practice With Authoritative Reports” — Alexander Payne Offers Comprehensive Law Reports, Spanning Over A Century Of Nigerian Jurisprudence
Interested buyers are encouraged to place their orders and enquiries via:
0704 444 4777, 0704 444 4999, 0818 199 9888
Website: www.alexandernigeria.com
