The figure is N669 billion lower than the N3.007 trillion that was shared in July, representing a 22.2 percent drop from what was described as the highest monthly allocation recorded in 2026.
The August allocation was announced at the September meeting of the Federation Account Allocation Committee, FAAC, held in Abuja. The allocation represents revenue generated in the month of August 2026, according to a statement released by the Office of the Accountant-General of the Federation.
According to the statement, the decline was mainly caused by a sharp fall in statutory revenue during the month under review.
Gross statutory revenue dropped by N1.508 trillion, which is a 34.6 percent decrease, from N4.359 trillion recorded in July to N2.850 trillion in August.
The fall has reversed the significant gain recorded in July, when gross statutory revenue had increased by N658.09 billion from N3.700 trillion in June to N4.359 trillion.
However, revenue from Value Added Tax, VAT, showed an improvement during the same period.
Gross VAT revenue rose by N40.875 billion, representing a 5.1 percent increase, from N793.968 billion in July to N834.843 billion in August.
For the month of August, a total of N3.685 trillion was available as gross revenue. From that amount, N125.142 billion was deducted as cost of collection, while N1.221 trillion was set aside for transfers, refunds and savings.
After all deductions were made, the sum of N2.338 trillion was left as distributable revenue for the three tiers of government.
The distributable amount is made up of N1.565 trillion from statutory revenue and N773.233 billion from VAT revenue.
From the total N2.338 trillion shared, the Federal Government received N804.897 billion, the 36 state governments got N794.313 billion, while the 774 local government councils received N555.142 billion.
In addition, the sum of N184.388 billion, which is 13 percent derivation revenue from mineral resources, was paid to oil-producing states.
A breakdown of the statutory revenue shows that from the N1.565 trillion distributable statutory revenue, the Federal Government got N727.573 billion, states received N369.035 billion, local governments got N284.511 billion, while N184.388 billion was paid to benefiting states as derivation.
From the N773.233 billion VAT revenue, the Federal Government received N77.323 billion, states got N425.278 billion, and local governments received N270.632 billion.
The FAAC communique indicated that the performance of the country's major revenue streams was mixed in August.
Revenue from Petroleum Profit Tax, Hydrocarbon Tax, Value Added Tax, Common External Tariff levies and Excise Duty recorded increases during the month.
On the other hand, collections from Companies Income Tax, Capital Gains Tax, Stamp Duties Tax, petroleum royalties, mineral royalties, gas-flaring penalties, import duty, rental gas-flaring fees and miscellaneous oil revenue declined.
The August allocation marks a significant reduction from the July figure, which was reported as the highest monthly FAAC allocation in 2026 and the largest in records dating back to 2019.
The latest figures have again highlighted the continued volatility in revenue accruing to the federation account, with changes in statutory revenue playing a major role in determining how much is available for sharing among the federal, state and local governments.
