FAAC Allocates ₦2.338 Trillion Federation Revenue for August 2026
August 2026 FAAC Allocations Drop as Statutory Revenues Decline
The Federation Account Allocation Committee shared a total sum of ₦2.338 trillion among the Federal Government, the 36 state governments, and the 774 local government councils for the month of August 2026.
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Disclosed in a communiqué issued following the committee meeting in Abuja, the distribution represents a reduction compared to the ₦3.007 trillion allocated during the preceding month of July 2026.
According to a statement released by Bawa Mokwa, Director of Press and Public Relations in the Office of the Accountant General of the Federation, total gross revenue available to the federation in August 2026 stood at ₦3.685 trillion.
From the gross earnings, statutory deductions accounted for ₦125.142 billion as the cost of collection by revenue-generating agencies, while ₦1.221 trillion was directed toward transfers, statutory refunds, and savings.
Breakdown of Distributable Revenue Pools
The ₦2.338 trillion total distributable pool comprised ₦1.565 trillion in statutory revenue and ₦773.233 billion derived from Value Added Tax collections.
From the total distributable fund of ₦2.338 trillion, the three tiers of government and derivation-eligible states received the following allocations:
Federal Government: Received ₦804.897 billion across statutory and consumption tax components.
State Governments: Received ₦794.313 billion across statutory and consumption tax components.
Local Government Councils: Received ₦555.142 billion across statutory and consumption tax components.
Derivation Revenue: Benefiting oil-producing states received ₦184.388 billion, reflecting the 13 percent statutory allocation on mineral revenue.
Disaggregating the ₦1.565 trillion statutory revenue pool, the Federal Government received ₦727.573 billion, state governments received ₦369.035 billion, and local government councils received ₦284.511 billion, with ₦184.388 billion allocated as derivation revenue.
Of the ₦773.233 billion distributed from Value Added Tax receipts, the Federal Government received ₦77.323 billion, state governments received ₦425.278 billion, and local government councils received ₦270.632 billion.
Revenue Performance across Key Sectoral Categories
Gross statutory revenue for August 2026 totaled ₦2.850 trillion, marking a decrease of ₦1.508 trillion from the ₦4.359 trillion recorded in July 2026. Conversely, gross Value Added Tax receipts rose to ₦834.843 billion in August 2026, recording an increase of ₦40.875 billion above the ₦793.968 billion registered in the previous month.
The committee reported significant growth across specific receipts, including Petroleum Profit Tax, Hydrocarbon Tax, Value Added Tax, Common External Tariff levies, and Excise Duties. However, declines were registered in Companies Income Tax, Capital Gains Tax, Stamp Duty Tax, petroleum royalties, mineral royalties, gas flared penalties, import duties, rental gas flared fees, and miscellaneous oil revenue.
Fiscal Implications for Sub-National Governance
The monthly revenue distribution underscores the ongoing exposure of sub-national fiscal budgets to fluctuations in primary statutory receipts and global energy market revenues. While consumption tax collections demonstrated steady growth, the overall drop in distributable funds puts pressure on state and local governments to strengthen domestic non-oil revenue generation.
Moving forward, fiscal sustainability across state and local tiers will depend on effective public financial management and improved domestic tax administration to cushion the impact of statutory revenue volatility.
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