The Federal Government, 36 states and 774 Local Government Councils have shared a total of N3.007 trillion as federation revenue for July 2026, following a significant increase in statutory revenue collections.
The disbursement was approved at the August 2026 meeting of the Federation Account Allocation Committee (FAAC), held in Owerri, Imo State.
According to a statement issued by the Director of Press and Public Relations in the Office of the Accountant-General of the Federation, Bawa Mokwa, gross statutory revenue rose to N4.359 trillion in July, representing an increase of N658.087 billion, or 17.8 per cent, compared with the N3.700 trillion recorded in June.
The increase was attributed to improved receipts from petroleum-related revenues and non-oil taxes.
However, gross Value Added Tax (VAT) collections recorded a marginal decline during the month. VAT revenue fell to N793.968 billion in July from N799.746 billion in June, representing a decrease of N5.778 billion, or 0.7 per cent.
The FAAC communiqué showed that several revenue streams recorded significant improvements in July, including Petroleum Profit Tax, Hydrocarbon Tax, Companies Income Tax, Capital Gains Tax, Stamp Duty, petroleum royalties, mineral royalties, excise duty and gas flaring penalties.
The gains were, however, partly moderated by declines in VAT, import duty, Common External Tariff levies, gas-flaring fees and miscellaneous oil revenue.
Mokwa said the committee would continue to work with revenue-generating agencies to identify collection gaps, strengthen remittance processes and improve overall revenue performance.
Revenue Growth and Fiscal Reforms
The latest increase in federation revenue comes amid ongoing fiscal reforms by the Federal Government, including the removal of petrol subsidy, foreign exchange reforms and measures aimed at expanding the country’s tax base and improving revenue collection.
Beyond the monthly allocation, the FAAC meeting also focused on how the three tiers of government can convert improved revenue inflows into sustainable economic development.
The meeting, held on the sidelines of the National Council of Federation and Economic Development, brought together finance commissioners and accountants-general to examine the fiscal position of the federation and strategies for strengthening the economies of states and local governments.
Officials were urged to focus on key areas considered critical to long-term fiscal sustainability, including improving internally generated revenue, commercialising public assets, expanding economic activities, attracting private-sector investment, developing human capital and strengthening transparency in public finance.
With the latest N3.007 trillion allocation, attention is now expected to shift from the size of federation revenue to how effectively the funds are deployed to improve infrastructure, strengthen public services, support economic activities and enhance the welfare of citizens across the country.
