FAAC Shares Historic ₦3.007tr July Revenue to FG, States, and LGAs
By Patience Ikpeme
The Federation Account Allocation Committee (FAAC) has authorized the disbursement of ₦3.007 trillion to the three tiers of government and other beneficiary entities as shared revenue for July 2026.
The decision came during the committee’s regular monthly business meeting convened in Owerri, the Imo State capital, alongside the National Council on Finance and Economic Development (NACOFED) conference. The joint gathering combined routine allocation procedures with broader discussions aimed at expanding fiscal frameworks across the federation.
The ₦3.007 trillion payout stands as the single highest monthly allocation distributed under any administration. The total shows a substantial increase from the ₦2.551 trillion shared during the previous month among the federal, state, and local governments, oil-producing states, and revenue-collecting agencies.
A breakdown of the July allocation shows that the Federal Government received ₦1.146 trillion, State Governments secured ₦943.352 billion, and Local Government Councils were allocated ₦673.649 billion. An additional ₦243.478 billion, representing the 13 percent derivation from mineral receipts, went directly to qualifying oil-producing states.
In an official statement signed by Mr. Bawa Mokwa, Director of Press and Public Relations in the Office of the Accountant-General of the Federation, the allocation reflects fundamental growth in the country’s earnings.
“The month’s figures point to a strengthening underlying revenue base,” Mokwa stated. “Gross statutory revenue rose to ₦4.359 trillion in July 2026, up ₦658.087 billion — a 17.8% increase — from ₦3.700 trillion in June 2026, reflecting improved collection performance across oil and non-oil statutory sources. Gross VAT revenue held broadly steady at ₦793.968 billion, a marginal decline of ₦5.778 billion (0.7%) from ₦799.746 billion in June, suggesting consumption-tax receipts remain resilient month-on-month.”
According to the official communiqué, overall progress was sustained by widespread gains across petroleum and non-petroleum streams. Petroleum Profit Tax, Hydrocarbon Tax, Companies Income Tax, Capital Gains Tax, Stamp Duty Tax, Petroleum Royalties, Mineral Royalties, Excise Duty, and Gas Flared Penalty all generated higher receipts in July due to better compliance and collection efficiency.
These upward movements countered minor decreases observed in Value Added Tax, Import Duty, Common External Tariff (CET) Levies, Rental of Gas Flared Fees, and Miscellaneous Oil Revenue. The committee noted that it will work with relevant revenue-generating bodies to close structural gaps and enforce remittance compliance.
Beyond distributing monthly funds, the Owerri gathering focused on converting recent revenue growth into long-term subnational stability. A dedicated retreat session for State Commissioners of Finance and Accountants-General examined overall economic conditions and fiscal governance.
Delegates noted that revenue growth over the past three years has been driven by subsidy removals, foreign exchange rate unification, and structural tax policies. Discussions pointed to the rollout of the Nigeria Tax Act 2025, which raised the states’ share of the VAT pool from 50 percent to 55 percent while reducing the Federal Government’s share from 15 percent to 10 percent. Under the legislation, 30 percent of the states’ VAT pool is assigned based on the point of consumption rather than corporate registration sites, tying state allocations to local commercial activity.
To ensure continued economic health, the committee urged federal and state authorities to strengthen six vital fiscal indicators: diversifying internal revenue sources beyond narrow bases, generating economic returns from idle public assets, using official state GDP data to grow local economies, creating predictable investment climates, investing in healthcare and education, and publishing timely, audited public financial accounts.
The committee stated that maintaining the high returns observed in July depends on strict remittance discipline among Ministries, Departments, and Agencies, while confirming support for ongoing reforms that bring stability to federation revenue sharing.
