By Our Reporter
The Federation Account Allocation Committee (FAAC) has shared a total of N3.007 trillion among the Federal Government, states and local government areas (LGAs) for July 2026, marking the highest monthly allocation recorded under President Bola Ahmed Tinubu’s administration.
The July allocation represents an increase of about N507 billion compared with the N2.5 trillion shared in June.
According to a statement issued on Tuesday by Bawa Mokwa, Director of Public Affairs at the Office of the Accountant-General of the Federation, the FAAC meeting was held in Owerri, Imo State, on the sidelines of the ongoing National Council of Federation and Economic Development (NACOFED).
Of the N3.007 trillion distributable revenue, the Federal Government received N1.14 trillion, while the 36 states and the Federal Capital Territory shared N943.35 billion. The 774 local government areas received N673.64 billion.
The committee also disclosed that N243.47 billion was distributed to benefiting states as the 13 per cent derivation revenue.
The latest figures were driven largely by a sharp rise in gross statutory revenue, which climbed to N4.35 trillion in July, up by N658.08 billion, or 17.8 per cent, from the N3.7 trillion recorded in June.
FAAC attributed the increase to improved collections from Petroleum Profit Tax, Hydrocarbon Tax, Companies Income Tax, Capital Gains Tax, Stamp Duty Tax, petroleum royalties, mineral royalties, excise duty and gas-flaring penalties.
However, the increase was partly moderated by declines in Value Added Tax (VAT), import duty, Common External Tariff levies, rental fees from gas flaring and miscellaneous oil revenue.
Gross VAT revenue fell marginally to N793.96 billion in July from N799.74 billion in June.
The committee urged the three tiers of government to take advantage of the improved revenue inflows to strengthen their fiscal positions and expand social investments.
FAAC warned that the rising allocations recorded over the past three years, largely driven by fuel subsidy removal, exchange-rate unification and tax reforms, should not be treated as a temporary windfall.
It called on governments to convert the increased revenues into sustainable fiscal strength and long-term economic development.
The committee identified six key areas for improving the financial position of governments: diversifying internally generated revenue, putting idle government assets to productive use, expanding economic activities, attracting investment, investing in human capital and strengthening public financial management.
FAAC further urged governments to institutionalise reforms within the next 12 months, including the development of comprehensive asset registers, payroll verification and the timely publication of audited financial accounts.
The committee said the measures would help ensure that the current revenue gains translate into lasting improvements in governance and citizens’ welfare.
