Nigeria's FAAC allocates N3.007 trillion in July revenue

The Federation Account Allocation Committee (FAAC) has approved the disbursement of N3.007 trillion in revenue for July 2026. This distribution is split among the Federal Government (N1.146 trillion), 36 state governments (N943.352 billion), and 774 local government councils (N673.649 billion). Additionally, N243.478 billion was allocated as derivation revenue for mineral resources.

Gross statutory revenue rose to N4.359 trillion in July, a 17.8 percent increase from June. This growth was driven by improved collections in Petroleum Profit Tax, Hydrocarbon Tax, Companies Income Tax, and various royalties and duties. However, Value Added Tax (VAT) saw a marginal decline of 0.7 percent, and declines were noted in import duties and gas-flaring fees.

Finance Minister Taiwo Oyedele attributed the surge in monthly allocations to President Bola Tinubu’s economic reforms, specifically the removal of fuel subsidies and the unification of the foreign exchange market. While noting that higher revenues have helped states meet salary obligations, Oyedele urged state and local governments to expand their internally generated revenue to ensure long-term economic resilience.

Separately, the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) reported that it has reconciled over N1.3 trillion in federation revenue, highlighting ongoing efforts to close collection gaps and modernize oversight through digitalization.