Oritsegbubemi Omatseyin
Lagos — The Federation Account Allocation Committee, FAAC, at its September 2026 meeting chaired by the Accountant-General of the Federation, Mr. Shamsudeen Ogunjimi shared a total sum of N2.58 trillion to the three tiers of government as Federation Account allocation .
From the total distributable amount, inclusive of Gross Statutory Revenue and Value Added Tax, the Federal Government received N804.897 billion, the States received N794.313 billion, while the Local Government Councils, LGCs, received N555.142 billion. In addition, N184.388 billion was shared as Derivation Revenue to the oil-producing States, representing the constitutionally prescribed 13 per cent of mineral revenue.
A total of N125.142 billion was deducted for the cost of collection, while N1.221 trillion was allocated for Transfers, Intervention and Refunds.
According to the Communique issued by FAAC at the end of the meeting, the Gross Revenue available from Value Added Tax for August 2026 stood at N834.843 billion, compared with N793.968 billion distributed in the preceding month, representing an increase of N40.875 billion in gross VAT revenue.
From the VAT revenue, N100.545 billion was deducted for the cost of collection, while N1.184 trillion was allocated for Transfers, Intervention and Refunds.
The balance of N733.233 billion was distributed among the three tiers of government as follows: the Federal Government received N77.323 billion, the States received N425.278 billion, while the Local Government Councils received N270.632 billion.
The Gross Statutory Revenue for August 2026 stood at N2.850 trillion, compared with N4.359 trillion received in the preceding month, representing a decrease of N1.509 trillion.
From the Gross Statutory Revenue, N24.597 billion was deducted for the cost of collection, while N37.014 billion was allocated for transfers, intervention and refunds.
The remaining balance of N1.565 trillion was distributed as follows: the Federal Government received N727.573 billion, the States received N369.035 billion, while N284.511 billion was allocated to the Local Government Councils. In addition, N184.388 billion was distributed as Derivation Revenue to the mineral-producing States, representing 13 per cent of mineral revenue.
The Communique further indicated that revenue from Petroleum Profit Tax, Hydrocarbon Tax, Value Added Tax, Customs and Excise Duties levies, and Excise Duty increased significantly during the period under review.
However, revenue from 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 recorded considerable decreases.
According to the Communique, the total revenue distributable for August 2026 was drawn from Statutory Revenue of N1.565 trillion and Value Added Tax of N773.233 billion, bringing the total distributable revenue to N2.338 trillion.
