The Federal Government, states and local government councils shared ₦2.338 trillion in federation revenue for August 2026, representing a sharp decline from the record allocation distributed for the previous month.

The amount was approved at the September meeting of the Federation Account Allocation Committee in Abuja, according to a statement by the Office of the Accountant-General of the Federation.

The August distribution fell by about 22.3 per cent from the roughly ₦3 trillion shared from July revenue.

FAAC said the ₦2.338 trillion distributable amount comprised approximately ₦1.56 trillion in statutory revenue and ₦773.23 billion in Value Added Tax revenue.

The Federal Government received approximately ₦804.89 billion, while states received ₦794.31 billion.

Local government councils received about ₦555.14 billion.

Oil-producing states also shared approximately ₦184.39 billion as 13 per cent derivation revenue.

FAAC said total gross revenue available for August stood at about ₦3.68 trillion.

About ₦125.14 billion was deducted for collection costs, while transfers, refunds and savings accounted for approximately ₦1.22 trillion.

Gross statutory revenue declined significantly during the month.

It fell from approximately ₦4.35 trillion in July to ₦2.85 trillion in August, a decrease of about ₦1.5 trillion.

VAT revenue moved in the opposite direction.

Gross VAT receipts increased from about ₦793.96 billion in July to ₦834.84 billion in August, representing an increase of roughly ₦40.87 billion.

FAAC said petroleum profit tax, hydrocarbon tax, VAT, common external tariff levies and excise duty recorded increases during the month.

However, company income tax, capital gains tax, petroleum and mineral royalties, import duty and some other revenue lines declined.

The August distribution remains historically large despite the month-on-month fall.

July's allocation had crossed the ₦3 trillion mark, reflecting the higher revenues that have flowed into the federation account in recent periods.

The latest figures will again focus attention on how federal, state and local governments translate rising public revenue into infrastructure and public services.