Naira notes
Federation Account Allocation Committee (FAAC) has distributed N2.55 trillion as revenue generated in June 2026 to the Federal Government, the 36 states and the 774 local government councils, marking a significant increase of N250 billion over the previous month’s allocation.
The latest disbursement represents a 10.9 per cent rise from the N2.3 trillion shared from May revenue, continuing the upward trend in monthly federation allocations recorded this year.
Data released after the July 2026 FAAC meeting in Abuja showed that June’s allocation is the highest in the recent series of monthly distributions. The committee had shared N2.26 trillion from April revenue, N2.04 trillion from March revenue and N1.89 trillion from February revenue.
Details of the allocation were contained in a statement issued by the Director of Press and Public Relations in the Office of the Accountant-General of the Federation, Bawa Mokwa, following the committee’s meeting.
According to the statement, the N2.55 trillion distributable revenue comprised N1.81 trillion from statutory revenue and N740.72 billion generated from Value Added Tax (VAT).
FAAC also disclosed that the total gross revenue available for June stood at N4.5 trillion. From this amount, N160.74 billion was deducted as the cost of revenue collection, while N1.79 trillion was set aside for transfers, interventions and refunds.
The committee reported a substantial increase in statutory revenue during the month, with gross earnings rising from N2.65 trillion in May to N3.7 trillion in June. Gross VAT collections also improved, increasing from N743.69 billion to N799.75 billion.
The improved revenue performance was attributed to stronger collections from several key revenue sources, including Companies Income Tax (CIT), Capital Gains Tax (CGT), Stamp Duties (SDT), petroleum royalties, gas flaring penalties, rental income, VAT, import duties and Common External Tariff (CET) levies.
However, FAAC noted that receipts from Petroleum Profit Tax (PPT), Hydrocarbon Tax, mineral royalties and related fees declined during the period, while excise duty recorded only a slight increase.
Under the approved sharing formula, the Federal Government received N923.44 billion, while the 36 state governments shared N838.21 billion. The 774 local government councils received N591.39 billion, while the oil-producing states were allocated N197.61 billion as 13 per cent derivation revenue.
A further breakdown showed that from the N1.81 trillion statutory revenue, the Federal Government received N849.37 billion, the states received N430.81 billion, local governments got N332.14 billion, while N197.61 billion was paid to oil-producing states as derivation.
From the N740.72 billion VAT revenue, the Federal Government received N74.07 billion, state governments shared N407.40 billion, while local government councils received N259.25 billion.
The steady growth in statutory and VAT collections significantly expanded the distributable revenue pool, resulting in higher allocations to all three tiers of government and reinforcing the positive revenue trend recorded in recent months.
