*Nigeria’s Federation Account Allocation Committee approves the disbursement of a total of ₦3.007 trillion to the Federal Government, the 36 state governments and the 774 Local Government Councils as July 2026 revenue
Emmanuel Akosile | ConsumerConnect
The Federation Account Allocation Committee (FAAC) has approved the disbursement of a total of ₦3.007 trillion to the Federal Government, the 36 state governments and the 774 Local Government Councils as revenue for July 2026.
The FAAC, which disclosed this development at a meeting held in Owerri, Imo State capital, said the Federal Government received a total of ₦1.146 trillion, while the 36 state governments received ₦943.352 billion and the 774 Local Government Council (LGAs) received ₦673.649 billion.
Bawa Mokwa, Director of Press and Public Relations, Office of the Accountant-General of the Federation (OAGF), Inna statement, disclosed that a total of ₦243.478 billion, representing 13 percent of mineral revenue, was also shared with the benefiting states as derivation revenue for last month.
The statement noted: “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.”
The Committee also stated: “Gross VAT revenue held broadly steady at ₦793.968 billion, a marginal decline of ₦5.778 billion, or 0.7 percent, from ₦799.746 billion in June, suggesting consumption-tax receipts remain resilient month-on-month.”
Mokwa explained in the statement that the FAAC session discussed the state of the economy, fiscal governance, and federal and subnational fiscal fitness.
The Committee said the session as well set out the scale of the recent revenue windfall, and urged deliberate reforms to convert it into durable fiscal strength rather than a temporary gain in the Nigerian economy.
It further stated: “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 noted that the meeting highlighted the impact of the Nigeria Tax Act 2025, which took effect January 1, 2026.
Under the new arrangement, the states’ share of VAT revenue rose from 50 percent to 55 percent, while the Federal Government’s share fell from 15 per cent to 10 per cent.
Also, 30 percent of the states’ VAT pool is now allocated based on the place of consumption rather than a company’s registered headquarters, directly linking a state’s economic activity to the size of its Federation allocation.
The FAAC communiqué attributed gains recorded July 2026 to broad-based strength across several revenue lines.
These include the 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-flaring penalties all recorded significant increases in July 2026.
The development indicated improved compliance, and collection efficiency across both oil and non-oil channels in the economy.
The Director of Press and Public Relations, Office of the Accountant-General of the Federation, said: “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.”
It also reaffirmed its commitment to full, transparent and timely remittance of collectible revenue by all revenue-generating agencies into the Federation Account ahead of the accounts reconciliation exercise for the period.
The Committee as well restated its commitment to diversifying the federation’s revenue base beyond oil, in line with ongoing tax administration and non-oil revenue mobilisation reforms.
It emphasised alignment between FAAC’s technical work and the NACOFED platform, reinforcing coordination between the Federal Government and states on fiscal policy, revenue-sharing and shared economic development priorities.
The communiqué indicated the FAAC resolved to continue monitoring solid minerals and other non-oil royalty streams as potential growth areas for future federation revenue.
It stated: “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.”