The Federal Government, 36 state governments and the 774 local government councils have shared a record ₦3 trillion from the Federation Account for July 2026, marking the highest monthly allocation distributed under the administration of President Bola Ahmed Tinubu.
According to Metro Daily, the announcement followed the August 2026 meeting of the Federation Account Allocation Committee (FAAC) held in Owerri, Imo State, and chaired by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele.
The July allocation represents a significant increase from the ₦2.551 trillion distributed for June 2026, reflecting an increase of ₦456 billion, or 17.9 per cent.
Breakdown of the Allocation
The FAAC communiqué, issued through the Office of the Accountant-General of the Federation, showed that:
- The Federal Government received ₦1.146 trillion.
- State governments received ₦943.352 billion.
- Local government councils received ₦673.649 billion.
- Oil-producing states also shared ₦243.478 billion as 13 per cent derivation revenue from mineral resources.
According to Metro Daily, the allocation remains a major source of funding for the three tiers of government, supporting the payment of salaries, infrastructure projects and essential public services.
Revenue Growth Drives Increase
FAAC attributed the record allocation to improved collections from both oil and non-oil revenue sources.
Gross statutory revenue increased to ₦4.359 trillion in July from ₦3.700 trillion recorded in June, representing a rise of ₦658.087 billion, or 17.8 per cent.
The committee said stronger collections were recorded from:
- Petroleum Profit Tax (PPT)
- Hydrocarbon Tax
- Companies Income Tax (CIT)
- Capital Gains Tax (CGT)
- Stamp Duties
- Petroleum Royalties
FAAC noted that the improvement reflected enhanced revenue collection efficiency and better compliance across several revenue streams.
VAT Records Slight Decline
Despite the overall increase in revenue, Value Added Tax (VAT) collections recorded a slight decline.
Gross VAT revenue stood at ₦793.968 billion in July, compared with ₦799.746 billion in June, representing a decrease of ₦5.778 billion or 0.7 per cent.
The committee also reported lower collections from import duties, Common External Tariff (CET) levies, gas flaring rental fees and miscellaneous oil revenue.
FAAC said it would continue working with relevant agencies to improve collections in the affected revenue categories.
FAAC Reaffirms Commitment to Revenue Reforms
The committee reiterated that sustaining higher allocations would depend on stronger revenue mobilisation, transparent remittances and continued reforms aimed at expanding non-oil revenue sources.
It also called for closer collaboration with the National Council of Federation and Economic Development (NACOFED) to strengthen fiscal coordination between the Federal Government and the states.
The record allocation is expected to provide additional fiscal support for governments across the country as they fund infrastructure, healthcare, education and other public sector obligations.
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