FAAC: FG, States, and LGs Share ₦2.338trn as Statutory Revenue Drops by ₦1.508trn
The Federal, State, and Local Governments shared ₦2.338 trillion in Federation Account revenue for August, marking a sharp decline from previous allocations due to a massive crash in statutory revenue.
The latest data from the Federation Account Allocation Committee (FAAC) reveals that total distributable revenue for the month dropped by roughly ₦669 billion compared to the ₦3.007 trillion distributed from July earnings.
Inside the Numbers: The Statutory Revenue Crash
According to an official statement from the Office of the Accountant General of the Federation (OAGF), the August distribution was heavily impacted by a steep decline in core revenue sources.
Gross statutory revenue collapsed to ₦2.850 trillion in August, down from the ₦4.359 trillion recorded in July—a staggering ₦1.508 trillion month-on-month drop.
The final distributable pool comprised ₦1.565 trillion in statutory revenue and ₦773.233 billion from Value Added Tax (VAT).
While corporate taxes and oil royalties suffered heavily, a few sectors managed to buck the downward trend.
Significant revenue increases were recorded in Petroleum Profit Tax (PPT), Hydrocarbon Tax, VAT, Common External Tariff (CET) levies, and Excise Duty. Conversely, Companies Income Tax (CIT), Capital Gains Tax (CGT), Stamp Duty, and mineral royalties plummeted.
The Silver Lining: VAT Revenue Surges
Amidst the statutory decline, VAT collections continued to offer a financial cushion for the three tiers of government. Gross VAT revenue grew to ₦834.843 billion in August, representing a ₦40.875 billion increase from the previous month. The consistent growth highlights a steady reliance on consumption-based taxes to shore up government coffers.
How the ₦2.338 Trillion Was Shared
The total distributable revenue was allocated among the three tiers of government and oil-producing regions. The federal government received ₦804.897 billion, state governments got ₦794.313 billion, while local government councils received ₦555.142 billion.
A total of ₦184.388 billion was distributed to oil-producing states under the 13% derivation fund framework.
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