FAAC Distributes N2.55tn June Revenue to FG, States, LGs

The Federation Account Allocation Committee (FAAC) has distributed N2.55 trillion to the Federal Government, the 36 state governments and the 774 local government councils as revenue generated in June 2026, representing a N250 billion increase from the N2.3 trillion shared in the previous month.

The latest allocation reflects a 10.9 per cent month-on-month increase and continues the steady upward trend in federation revenue recorded so far this year.

The June distribution follows successive monthly increases in allocations, with the N2.3 trillion shared from May revenue exceeding April’s N2.26 trillion by N43 billion. The April allocation was N217 billion higher than the N2.04 trillion distributed from March revenue, while the March figure had also risen by N150 billion from the N1.89 trillion shared in February.

The details were contained in a communiqué issued after the July 2026 meeting of the Federation Account Allocation Committee in Abuja and signed by the Director of Press and Public Relations in the Office of the Accountant-General of the Federation, Bawa Mokwa.

According to the statement, “A total sum of N2.55tn, being June 2026 Federation Account Revenue, has been shared to the Federal Government, States and the Local Government Councils.”

The communiqué disclosed that the distributable revenue comprised N1.81 trillion in statutory revenue and N740.72 billion generated from Value Added Tax (VAT).

It further revealed that the gross revenue available for June stood at N4.5 trillion, from which N160.74 billion was deducted as the cost of collection, while N1.79 trillion was recorded as transfers, interventions and refunds.

FAAC reported a significant improvement in statutory revenue during the month.

According to the committee, gross statutory revenue increased from N2.65 trillion in May to N3.7 trillion in June, representing a sharp rise of N1.05 trillion.

Similarly, gross Value Added Tax revenue rose from N743.69 billion in May to N799.75 billion in June, reflecting an increase of N56.08 billion.

The committee attributed the stronger revenue performance to improved collections across several key revenue streams.

It stated, “In June 2026, Companies Income Tax, CGT, SDT, Petroleum Royalties, Gas Flared, Rental & MOR, Value Added Tax, Import Duty and CET Levies increased significantly while Petroleum Profit Tax, Hydrocarbon Tax, Mineral Royalties and Fees decreased considerably. Excise Duty increased only marginally.”

From the total N2.55 trillion distributable revenue, 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 received N197.61 billion as their constitutionally mandated 13 per cent derivation revenue.

A breakdown of the N1.81 trillion statutory revenue showed that the Federal Government received N849.37 billion, the states received N430.81 billion, while the local government councils received N332.14 billion.

The oil-producing states also received N197.61 billion from the statutory revenue as derivation allocation.

From the N740.72 billion VAT revenue, the Federal Government received N74.07 billion, the states received N407.4 billion, while the local government councils received N259.25 billion.

The improved allocation was driven largely by stronger receipts from Companies Income Tax, petroleum royalties, Value Added Tax, import duties and other major revenue sources, despite declines in Petroleum Profit Tax, Hydrocarbon Tax, mineral royalties and related fees.

The sharp increase in statutory revenue, combined with higher VAT collections, pushed the June distributable pool to one of the highest levels recorded this year, providing increased funding to the Federal Government, state governments and local government councils as they continue to implement their respective budgets.