FG, States, LGs Get Biggest-Ever Allocation as FAAC Shares N2.55tn June Revenue

By Jane Okafor, Abuja

The Federation Account Allocation Committee (FAAC) has shared a record N2.550 trillion as revenue generated in June 2026 among the Federal Government, the 36 states and the 774 local government councils, marking the highest monthly allocation ever distributed from the Federation Account.

The latest disbursement represents an increase of N250 billion, or 10.9 per cent, over the amount shared for May 2026, reflecting stronger revenue inflows from key tax and non-tax sources.

The Director of Press and Public Relations at the Office of the Accountant-General of the Federation (OAGF), Mr. Bawa Mokwa, said the allocation was approved at the July 2026 meeting of FAAC held in Abuja.

According to him, the N2.550 trillion distributable revenue comprised N1.809 trillion in statutory revenue and N740.724 billion from Value Added Tax (VAT).

He explained that the increase in revenue was driven by improved collections from Companies Income Tax (CIT), Capital Gains Tax (CGT), Stamp Duty, petroleum royalties, gas flaring, rental income, Minimum Operating Revenue, VAT, import duties and Common External Tariff (CET) levies.

The FAAC communiqué showed that N4.500 trillion was recorded as total gross revenue for June 2026. Out of the amount, N160.744 billion was deducted as the cost of revenue collection, while N1.789 trillion was set aside for transfers, interventions and refunds before the balance was shared among the three tiers of government.

A breakdown of the allocation showed that the Federal Government received N923.438 billion, while the 36 states shared N838.208 billion. The 774 local government councils received N591.390 billion, while N197.610 billion, representing the constitutionally mandated 13 per cent derivation fund, was distributed to oil-producing states.

From the N1.809 trillion statutory revenue, the Federal Government received N849.366 billion, states got N430.810 billion, and local government councils received N332.136 billion. Oil-producing states also received N197.610 billion as derivation revenue.

Similarly, from the N740.724 billion VAT revenue, the Federal Government received N74.072 billion, states shared N407.398 billion, while local government councils received N259.253 billion.

The committee also reported a significant improvement in statutory revenue generation during the month. Gross statutory revenue rose to N3.700 trillion in June from N2.651 trillion recorded in May, representing an increase of N1.049 trillion.

Gross VAT collections also increased from N743.688 billion in May to N799.746 billion in June, an improvement of N56.078 billion.

Despite the strong overall performance, FAAC noted that Petroleum Profit Tax (PPT), Hydrocarbon Tax (HT), mineral royalties and related fees recorded declines during the period, while revenue from excise duties posted only a marginal increase.

The record allocation underscores the sustained improvement in federally collected revenues and is expected to boost fiscal capacity across the three tiers of government as they finance infrastructure projects, public services and development programmes.