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

The allocation was from revenue generated in August 2026, according to a statement issued on Thursday by the Office of the Accountant-General of the Federation (OAGF).

The latest distribution fell by N669bn compared with the previous month’s allocation, which was the highest monthly FAAC disbursement recorded in 2026.

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

The OAGF Director of Press and Public Relations, Bawa Mokwa, said, “A total sum of N2.338tn, being August 2026 Federation Account Revenue, has been shared to the Federal Government, States and the Local Government Councils.”

Despite the decline in statutory revenue, Value Added Tax (VAT) collections increased by N40.875bn to N834.843bn in August, representing a 5.1 per cent rise from N793.968bn recorded in July.

A total of N3.685tn in gross revenue was available for distribution during the month. After N125.142bn was deducted as the cost of collection and N1.221tn for transfers, refunds and savings, N2.338tn remained distributable.

The Federal Government received N804.897bn, while the 36 states got N794.313bn. The 774 local government councils received N555.142bn, while N184.388bn was paid to benefiting states as 13 per cent derivation revenue from mineral resources.

Of the distributable revenue, N1.565tn came from statutory revenue, while N773.233bn was generated from VAT. The FAAC communiqué also reported increases in Petroleum Profit Tax, Hydrocarbon Tax, VAT, Common External Tariff levies and excise duty, while Companies Income Tax, Capital Gains Tax, Stamp Duties, petroleum royalties and several other revenue streams recorded declines.