FAAC Shares Record ₦2.55tn June Revenue As Federal Allocation Hits New High

The Federation Account Allocation Committee (FAAC) has distributed a record ₦2.550 trillion to the Federal Government, the 36 states and the 774 local government councils as revenue generated in June 2026.

The June allocation represents the highest amount ever shared from the Federation Account, exceeding the previous month's distribution by ₦250 billion, an increase of 10.9 per cent.

The improved revenue performance was driven by stronger collections from Companies Income Tax (CIT), Capital Gains Tax (CGT), Stamp Duty, Value Added Tax (VAT), petroleum royalties, gas flaring, rental income, Minimum Operating Revenue, import duties and Common External Tariff (CET) levies.

The Director of Press and Public Relations at the Office of the Accountant-General of the Federation (OAGF), Mr Bawa Mokwa, disclosed the figures in a statement following the July 2026 FAAC meeting held in Abuja.

According to him, the distributable revenue comprised ₦1.809 trillion in statutory revenue and ₦740.724 billion generated from Value Added Tax.

"The ₦2.550 trillion total distributable revenue comprised distributable statutory revenue of ₦1.809 trillion and distributable Value Added Tax (VAT) revenue of ₦740.724 billion," Mokwa said.

Gross Revenue Reaches ₦4.5 Trillion

FAAC reported that the Federation Account generated ₦4.500 trillion in gross revenue during June.

From this amount, ₦160.744 billion was deducted as the cost of revenue collection, while ₦1.789 trillion was allocated to transfers, interventions and refunds before the balance was distributed among the three tiers of government.

The committee noted that statutory revenue recorded substantial growth during the month.

Gross statutory revenue rose from ₦2.651 trillion in May to ₦3.700 trillion in June, representing an increase of ₦1.049 trillion.

VAT receipts also improved, increasing from ₦743.688 billion in May to ₦799.746 billion in June, a rise of ₦56.078 billion.

How The Revenue Was Shared

Of the total distributable revenue of ₦2.550 trillion, the Federal Government received ₦923.438 billion.

The 36 state governments shared ₦838.208 billion, while the 774 local government councils received ₦591.390 billion.

Oil-producing states also received ₦197.610 billion, representing the constitutionally approved 13 per cent derivation from mineral revenue.

From the statutory revenue component of ₦1.809 trillion, the Federal Government received ₦849.366 billion, states received ₦430.810 billion, while local governments got ₦332.136 billion.

The oil-producing states' derivation allocation of ₦197.610 billion was also paid from the statutory revenue pool.

For the ₦740.724 billion distributable VAT revenue, the Federal Government received ₦74.072 billion, states shared ₦407.398 billion, while local government councils received ₦259.253 billion.

Tax Revenue Drives Growth

FAAC attributed the strong performance in June to improved collections across several key revenue streams.

According to the committee, Companies Income Tax, Capital Gains Tax, Stamp Duty, petroleum royalties, gas flaring, rental income, Minimum Operating Revenue, Value Added Tax, import duties and Common External Tariff levies all recorded noticeable increases during the month.

However, receipts from Petroleum Profit Tax (PPT), Hydrocarbon Tax (HT), mineral royalties and related fees declined, while revenue generated from excise duties recorded only a marginal increase.

The latest allocation underscores the continued improvement in non-oil tax collections and broader government efforts to strengthen revenue generation, providing more funds for the Federal Government, states and local governments to finance public services and development projects.