Barbara Bako, Abuja.
The Federation Account Allocation Committee (FAAC) has approved the sharing of ₦3.007 trillion to the Federal Government, 36 states and 774 local government councils as revenue for July 2026.
The decision was reached at FAAC’s August meeting held in Owerri, Imo State, where the committee also urged governments at all levels to channel the recent increase in revenue towards sustainable economic development and social investment.
FAAC said gross statutory revenue rose by ₦658.087 billion, or 17.8 per cent, to ₦4.359 trillion in July from ₦3.700 trillion in June.
The increase was attributed to stronger collections from Petroleum Profit Tax, Hydrocarbon Tax, Companies Income Tax, Capital Gains Tax, Stamp Duty, petroleum royalties, mineral royalties, excise duty and gas-flared penalties.
However, gross Value Added Tax revenue fell marginally by 0.7 per cent to ₦793.968 billion from ₦799.746 billion recorded in June.
The committee also highlighted the impact of the Nigeria Tax Act 2025, which increased states’ share of VAT revenue from 50 per cent to 55 per cent from January 2026.
FAAC identified improved internally generated revenue, productive use of government assets, investment attraction, human capital development and transparent public financial management as key areas states should prioritise.
It further urged all tiers of government to use the period of stronger revenue inflows to implement lasting fiscal reforms, including payroll verification, comprehensive asset registers and timely publication of audited accounts.
The committee reaffirmed its commitment to improving revenue collection and remittance while reducing dependence on oil and strengthening the predictability of allocations to the three tiers of government.
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