The Federation Account Allocation Committee (FAAC) distributed a total of N3.007 trillion to the three tiers of government in July 2026, representing a 17.9 per cent increase from the N2.551 trillion shared in June.
The July allocation was announced after FAAC’s August 2026 meeting in Owerri, Imo State, chaired by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele.
Recall that FAAC distributed N2.551 trillion to the three tiers of government for June 2026 at its July meeting.
The latest allocation represents an increase of N456 billion, or 17.9 per cent, compared with the previous month.
In a communiqué issued after the meeting through the Office of the Accountant-General of the Federation and signed by its Director of Press and Public Relations, Bawa Mokwa, FAAC attributed the increase to improved collections from oil and non-oil statutory revenue sources.
Gross statutory revenue for July stood at N4.359 trillion, an increase of N658.087 billion, or 17.8 per cent, from the N3.700 trillion recorded in June.
The committee noted that gross Value Added Tax (VAT) revenue remained broadly stable at N793.968 billion, although this represented a marginal decline of N5.778 billion, or 0.7 per cent, from the N799.746 billion recorded in June.
According to the communiqué, the Federal Government received N1.146 trillion, while the state governments received N943.352 billion and the local government councils received N673.649 billion.
In addition, N243.478 billion, representing 13 per cent of mineral revenue, was shared among the benefiting states as derivation revenue.
FAAC attributed the increase in revenue to improved collections across several revenue streams.
Petroleum Profit Tax (PPT), Hydrocarbon Tax (HT), Companies Income Tax (CIT), Capital Gains Tax (CGT), Stamp Duty Tax (SDT), petroleum royalties, mineral royalties, excise duty and gas flared penalties all recorded significant increases in July.
The committee said the increases pointed to improved compliance and collection efficiency across both oil and non-oil revenue channels.
However, the gains were partly offset by declines in VAT, import duty, Common External Tariff (CET) levies, rental of gas-flared fees and miscellaneous oil revenue.
FAAC said it would continue to monitor the affected revenue streams while working with revenue-generating agencies to close collection gaps and improve remittance.
Mokwa said the committee also reaffirmed its commitment to the full, transparent and timely remittance of collectible revenue by all revenue-generating agencies into the Federation Account.
He said the committee would continue to diversify the federation’s revenue base beyond oil, in line with ongoing tax administration and non-oil revenue mobilisation reforms.
FAAC also stressed the need for greater alignment between its technical work and the National Council of Federation and Economic Development (NACOFED) platform to strengthen coordination between the Federal Government and the states on fiscal policy, revenue sharing and economic development priorities.
The committee noted that sustaining the statutory revenue gains recorded in July would depend on continued discipline in revenue collection and remittance by Ministries, Departments and Agencies (MDAs).
