Governance
FAAC Shares ₦3.007trn Among FG, States, LGs for July
The Federal Accounts Allocation Committee (FAAC) has approved the disbursement of ₦3.007 trillion to the Federal Government, the 36 states and the 774 Local Government Councils as revenue for July 2026.
The figures indicate an improvement in the underlying revenue base, with gross statutory revenue rising to ₦4.
Gross Value Added Tax (VAT) revenue remained relatively stable at ₦793.968 billion, representing a marginal decline of ₦5.778 billion, or 0.7 per cent, from the ₦799.746 billion recorded in June. The figures suggest that consumption-tax receipts remained resilient during the month.
The communiqué attributed the increase in revenue to broad-based growth across several revenue streams. Petroleum Profit Tax (PPT), Hydrocarbon Tax (HT), Companies Income Tax (CIT), Capital Gains Tax (CGT), Stamp Duty Tax (SDT), Petroleum Royalties, Mineral Royalties, Excise Duty and Gas Flared Penalty all recorded significant increases in July.
However, the gains were partly offset by declines in Value Added Tax (VAT), Import Duty, CET Levies, Rental of Gas Flared Fee and Miscellaneous Oil Revenue. The Committee said it would continue to monitor these areas while working with revenue-generating agencies to address collection gaps and improve remittance discipline.
FAAC also reaffirmed its commitment to ensuring full, transparent and timely remittance of collectible revenue by all revenue-generating agencies into the Federation Account, ahead of the planned accounts reconciliation exercise.
The Committee further stressed the need to diversify the federation’s revenue base beyond oil, in line with ongoing tax administration and non-oil revenue mobilisation reforms.
It also highlighted the importance of aligning FAAC’s technical activities with the NACOFED platform to strengthen coordination between the Federal Government and states on fiscal policy, revenue sharing and shared economic development priorities.
FAAC noted that solid minerals and other non-oil royalty streams would continue to be monitored as potential areas for future growth in federation revenue.
The Committee said sustaining the statutory revenue gains recorded in July would depend on continued discipline in revenue collection and remittance across Ministries, Departments and Agencies (MDAs). It reiterated its support for reforms aimed at improving the predictability and growth of allocations to all three tiers of government.
