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Federation Account Allocation Committee (FAAC) |
The Federation Account Allocation Committee (FAAC) has shared a total of N2.338 trillion among the three tiers of government for August 2026, marking a sharp decline from previous months. The drop follows a 34.62 percent slump in gross federation revenue, which fell from N4.359 trillion in July to N2.850 trillion in August.
According to the communique issued after the September FAAC meeting, the steep decline was driven by significantly lower collections from Companies Income Tax and Capital Gains Tax (CIT/CGT), Stamp Duty Tax, Petroleum Royalties, Mineral Royalties, Gas Flared Penalty, Import Duty, Rental, Gas Flared Fee and Miscellaneous Oil Revenue. In contrast, Petroleum Profit Tax, Hydrocarbon Tax, Value Added Tax, CET Levies and Excise Duty recorded increases during the period.
Of the gross statutory revenue of N2.850 trillion, the distributable portion stood at N1.565 trillion. From this, the Federal Government received N727.573 billion, State governments got N369.035 billion, and Local Government Councils received N284.511 billion. An additional N184.388 billion, representing 13 percent of mineral revenue, was shared as derivation to the benefiting oil-producing states.
Value Added Tax performed more steadily. Gross VAT available rose to N834.843 billion from N793.968 billion in July, while distributable VAT stood at N773.233 billion. From the VAT pool, the Federal Government took N77.323 billion, States received N425.278 billion, and Local Governments got N270.632 billion.
Combining both statutory and VAT revenues, the Federal Government’s total share came to N804.897 billion, States received N794.313 billion, and Local Government Councils got N555.142 billion. Gross revenue available for the month was N3.685 trillion before deductions of N125.142 billion for cost of collection and N1.221 trillion in transfers, refunds and savings.
The sharp contraction in statutory revenue highlights ongoing volatility in Nigeria’s federation account inflows, particularly from oil-related and company taxes. The lower allocation is expected to tighten fiscal space for both federal and sub-national governments at a time when spending pressures remain high. Analysts will be watching whether the rebound in certain tax lines can offset the broader revenue weakness in subsequent months.