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FAAC Distributes N2.55trn as June Revenue Rises
The Federation Account Allocation Committee (FAAC) has shared N2.55tn among the Federal Government, state governments and local government councils from June 2026 revenue, representing an increase of N250bn from the N2.3tn distributed in the preceding month.
The latest allocation represents a 10.9 per cent month-on-month increase and extends the steady rise in federation revenue this year.
The N2.3tn shared from May revenue was N43bn higher than the N2.26tn distributed from April revenue, while the April allocation exceeded the N2.04tn shared from March revenue by N217bn. The March distribution had also risen by N150bn from the N1.89tn shared from February revenue.
The details were contained in a statement signed by the Director of Press and Public Relations, Office of the Accountant-General of the Federation, Bawa Mokwa, on Wednesday after the July 2026 meeting of the Federation Account Allocation Committee held in Abuja.
According to the statement, “A total sum of N2.55tn, being June 2026 Federation Account Revenue, has been shared to the Federal Government, States and the Local Government Councils.”
The communiqué stated that the N2.55tn distributable revenue comprised N1.81tn in statutory revenue and N740.72bn in Value Added Tax revenue. It added that total gross revenue available in June stood at N4.5tn, out of which N160.74bn was deducted as the cost of collection, while N1.79tn was recorded as transfers and refunds.
The committee reported a sharp increase in statutory revenue during the month. According to the communiqué, gross statutory revenue rose to N3.7tn in June from N2.65tn in May, an increase of N1.05tn.
Gross VAT revenue also improved, rising to N799.75bn from N743.69bn in May, representing an increase of N56.08bn. The communiqué attributed the improved revenue performance to stronger collections from several major revenue sources.
It stated, “In June 2026, Companies Income Tax, CGT, SDT, Petroleum Royalties, Gas Flared, Rental & MOR, Value Added Tax, Import Duty and CET Levies increased significantly while Petroleum Profit Tax, Hydrocarbon Tax, Mineral Royalties and Fees decreased considerably. Excise Duty increased only marginally.”
From the N2.55tn distributable revenue, the Federal Government received N923.44bn, while the 36 states received N838.21bn. The 774 local government councils received N591.39bn, while oil-producing states shared N197.61bn as 13 per cent derivation revenue.
A breakdown of the N1.81tn statutory revenue showed that the Federal Government received N849.37bn, state governments received N430.81bn, and local government councils received N332.14bn.
The oil-producing states also received N197.61bn as derivation revenue from the statutory allocation. From the N740.72bn distributable VAT revenue, the Federal Government received N74.07bn, the states received N407.4bn, while the local government councils received N259.25bn.
The latest allocation was supported by improved collections from Companies Income Tax, petroleum royalties, Value Added Tax, import duties, and other revenue sources, despite declines in Petroleum Profit Tax, Hydrocarbon Tax, mineral royalties, and related fees.
The sharp increase in statutory revenue, coupled with higher VAT receipts, lifted the distributable pool to one of its highest levels this year, providing increased allocations to the three tiers of government.
