Total revenue available for sharing among the three tiers of government suffered a notable decline in August, dropping significantly compared to the preceding month.
At the Federation Account Allocation Committee (FAAC) meeting held in Abuja, a total sum of N2.338 trillion was approved for distribution to the Federal Government, State Governments, and Local Government Councils (LGCs).
The distributable pool comprised N1.565 trillion in statutory revenue and N773.233 billion from Value Added Tax (VAT).
Gross statutory revenue received for August stood at N2.850 trillion, marking a steep drop of N1.508 trillion compared to the N4.359 trillion recorded in July.
According to the official communiqué issued by FAAC, total gross revenue available for the month was N3.685 trillion. From this amount, deductions for the cost of collection totaled N125.142 billion, while total transfers, refunds, and savings accounted for N1.221 trillion.
While statutory collections saw a sharp contraction, Value Added Tax (VAT) showed slight resilience. Gross VAT revenue for August rose to N834.843 billion, representing an increase of N40.875 billion over the N793.968 billion recorded in July.
A breakdown of the final disbursements shows that the Federal Government received a total of N804.897 billion, while State Governments shared N794.313 billion.
The Local Government Councils received N555.142 billion, with an additional N184.388 billion paid out to benefiting states as 13% derivation revenue from mineral resources.
The dip in overall revenue was tied to fluctuations across major revenue heads. While collections from Petroleum Profit Tax (PPT), Hydrocarbon Tax (HT), VAT, CET Levies, and Excise Duty recorded significant increases during the month, major revenue streams such as Companies Income Tax (CIT), petroleum royalties, mineral royalties, and Import Duty experienced considerable decreases.