FAAC Allocation
The Federation Account Allocation Committee (FAAC) shared N2.55 trillion among the Federal Government, state governments and local government councils in June 2026, as Value Added Tax (VAT) revenue rose by 7.5 per cent month-on-month.
The allocation was approved at FAAC’s July meeting held in Abuja on Wednesday, according to a statement issued by Bawa Mokwa, Director of Press and Public Relations at the Office of the Accountant-General of the Federation.
According to the statement, the N2.55 trillion distributable revenue comprised N1.8 trillion in statutory revenue and N740.72 billion generated from VAT.
FAAC said the federation account recorded a gross revenue of N4.5 trillion in June. From the total revenue, N160.74 billion was deducted as the cost of collection, while N1.78 trillion was allocated to transfers, interventions and refunds.
Of the total amount distributed, the Federal Government received N923.43 billion, states received N838.2 billion, while local government councils got N591.39 billion. Oil-producing states also received N197.61 billion as 13 per cent derivation revenue.
The committee reported that gross statutory revenue increased to N3.7 trillion in June from N2.65 trillion recorded in May, representing a month-on-month increase of N1.04 trillion.
From the N1.8 trillion distributable statutory revenue, the Federal Government received N849.36 billion, states received N430.81 billion, while local governments got N332.13 billion. Oil-producing states received an additional N197.61 billion as derivation revenue.
VAT revenue also posted strong growth during the month. Gross VAT collections rose to N799.74 billion in June from N743.68 billion in May, reflecting an increase of N56.07 billion or 7.5 per cent.
Out of the N740.72 billion distributable VAT revenue, the Federal Government received N74.07 billion, states got N407.39 billion, while local government councils received N259.25 billion.
FAAC attributed the stronger revenue performance to higher collections from Company Income Tax, Capital Gains Tax, stamp duties, petroleum royalties, gas flaring penalties, rents, miscellaneous oil revenue, VAT, import duties and Common External Tariff levies.
However, the committee noted that receipts from Petroleum Profit Tax, Hydrocarbon Tax, mineral royalties and mining fees declined during the period, while excise duty recorded only marginal growth.
