FAAC Shares N3.007 Trillion to FG, States and LGs for July 2026

By Victor Idajili

The Federation Account Allocation Committee, FAAC, has distributed N3.007 trillion to the federal government, states and local government councils for July 2026. 

The amount represents a 17.9% increase from the N2.551 trillion shared in June.

The 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.

According to a communiqué issued by the Office of the Accountant-General of the Federation and signed by Director of Press and Public Relations, Bawa Mokwa, the jump was driven by improved collections from both oil and non-oil revenue sources.

From the total, the Federal Government got N1.146 trillion, states received N943.352 billion, and local governments got N673.649 billion. 

An additional N243.478 billion was paid to oil-producing states as 13% derivation revenue from mineral earnings.

  
Gross statutory revenue for July stood at N4.359 trillion, up by N658.087 billion or 17.8% compared to N3.700 trillion in June.

Several revenue streams recorded strong growth. Petroleum Profit Tax, Hydrocarbon Tax, Companies Income Tax, Capital Gains Tax, Stamp Duty, petroleum royalties, mineral royalties, excise duty and penalties on gas flaring all posted significant increases. FAAC said this reflects better compliance and improved collection efficiency.

However, not all streams performed well. Value Added Tax revenue dipped slightly to N793.968 billion, a 0.7% drop from N799.746 billion in June. Import duty, Common External Tariff levies, gas-flared rental fees and miscellaneous oil revenue also declined.

The committee said it will keep monitoring those weaker areas and work with revenue agencies to close collection gaps.

 
Mokwa said FAAC reaffirmed its commitment to transparent and timely remittance of all collectible revenue by Ministries, Departments and Agencies into the Federation Account.

The committee also reiterated plans to further diversify revenue away from oil, in line with ongoing tax administration and non-oil revenue reforms.

FAAC further stressed the need for better coordination between its technical team and the National Council on Federation and Economic Development, NACOFED, to align fiscal policy, revenue sharing and development priorities between the federal government and states.

The committee noted that sustaining July’s revenue gains will depend on continued discipline in collection and remittance by MDAs. It also pledged support for reforms aimed at making allocations to all tiers of government more predictable and growth-oriented.