The Federal Government, 36 states and 774 local government councils have shared a record ₦3.007 trillion in revenue for July 2026, following approval by the Federation Account Allocation Committee (FAAC).
The allocation was approved at FAAC’s meeting in Owerri, Imo State, with the Federal Government receiving ₦1.146 trillion, states getting ₦943.352 billion, and local government councils receiving ₦673.649 billion.
The benefiting states also received ₦243.478 billion, representing 13 per cent derivation revenue from mineral resources.
The figures were disclosed in a statement by Bawa Mokwa, Director of Press and Public Relations, Office of the Accountant-General of the Federation, who said the latest allocation reflected an improvement in the federation’s revenue base.
According to Mokwa, “the month’s figures point to a strengthening underlying revenue base. Gross statutory revenue rose to ₦4.359 trillion in July 2026, up ₦658.087 billion, or 17.8 per cent, 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, or 0.7 per cent, from ₦799.746 billion in June, suggesting consumption-tax receipts remain resilient month-on-month.”
The FAAC meeting also reviewed developments in the economy, fiscal governance and the financial position of the three tiers of government, while stressing the need to transform the recent revenue gains into sustainable fiscal strength.
“The meeting acknowledged that gross FAAC have risen significantly over the past three years, driven by subsidy removal, exchange-rate unification and tax reform,” the statement said.
The committee also highlighted the impact of the Nigeria Tax Act 2025, which took effect on January 1, 2026.
Under the new arrangement, states’ share of VAT revenue increased from 50 per cent to 55 per cent, while the Federal Government’s share dropped from 15 per cent to 10 per cent.
Also, 30 per cent of the states’ VAT pool is now distributed based on the place of consumption rather than the registered headquarters of companies, linking allocations more directly to economic activity within each state.
FAAC attributed the July revenue gains to improved collections across several revenue streams, including Petroleum Profit Tax, Hydrocarbon Tax, Companies Income Tax, Capital Gains Tax, Stamp Duty Tax, petroleum royalties, mineral royalties, excise duty and gas-flaring penalties.
“These gains were partly offset by declines in Value Added Tax (VAT), Import Duty, CET Levies, Rental of Gas Flared Fee and Miscellaneous Oil Revenue, which the Committee will continue to monitor as it works with revenue-generating agencies to close collection gaps and improve remittance discipline.”
The committee reaffirmed its commitment to ensuring full, transparent and timely remittance of collectible revenue by Ministries, Departments and Agencies (MDAs) into the Federation Account ahead of the accounts reconciliation exercise.
It also stressed the importance of diversifying the federation’s revenue base beyond crude oil through tax administration and non-oil revenue mobilisation reforms.
FAAC further emphasised closer coordination between the Federal Government and states through the NACOFED platform on fiscal policy, revenue sharing and broader economic development priorities.
The committee also resolved to continue monitoring solid minerals and other non-oil royalty streams as potential sources of additional federation revenue.
Mokwa said sustaining the revenue gains would depend largely on discipline in collection and remittance across government agencies.
“The Committee noted that sustaining the statutory revenue gains recorded in July 2026 will depend on continued discipline in collection and remittance across Ministries, Departments and Agencies (MDAs), and reiterated its support for reforms aimed at improving the predictability and growth of allocations to all three tiers of government,” the statement noted.
