FAAC Allocation Rises to N2.55tn on Higher June Revenue
Higher tax and VAT collections lifted June FAAC allocation, boosting funds shared among federal, state and local governments.
The Federation Account Allocation Committee (FAAC) shared a total of N2.550 trillion among the Federal Government, the 36 states and the 774 local government councils for June 2026, following a significant increase in statutory revenue and Value Added Tax (VAT) collections.
A communiqué issued after the July FAAC meeting showed that the distributable revenue comprised N1.809 trillion in statutory revenue and N740.724 billion from VAT.
According to the Office of the Accountant-General of the Federation (OAGF), total gross revenue available in June stood at N4.500 trillion, from which N160.744 billion was deducted as the cost of collection, while N1.789 trillion was set aside for transfers, interventions and refunds.
The Federal Government received N923.438 billion from the distributable pool, while state governments got N838.208 billion. Local government councils received N591.390 billion, with oil-producing states sharing N197.610 billion as 13 per cent derivation revenue.
A breakdown of the statutory revenue showed that the Federal Government received N849.366 billion, states received N430.810 billion, while local governments received N332.136 billion. The derivation allocation to eligible states remained N197.610 billion.
From the N740.724 billion VAT revenue, the Federal Government received N74.072 billion, state governments got N407.398 billion, while local governments received N259.253 billion.
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FAAC also reported a strong improvement in revenue generation during the month. Statutory revenue increased to N3.700 trillion in June from N2.651 trillion in May, representing an increase of N1.049 trillion.
Similarly, gross VAT revenue rose to N799.746 billion, up from N743.688 billion recorded in May, reflecting an increase of N56.078 billion.
The committee attributed the improved revenue performance to significant increases in Companies Income Tax (CIT), Capital Gains Tax (CGT), Stamp Duties, Petroleum Royalties, Gas Flared, Rental and Miscellaneous Oil Revenue (MOR), Value Added Tax (VAT), import duties and Common External Tariff (CET) levies.
However, it noted that receipts from Petroleum Profit Tax (PPT), Hydrocarbon Tax (HT), Mineral Royalties and Fees declined considerably during the month, while Excise Duty recorded only a marginal increase.
The higher June allocation is expected to provide additional fiscal support to the three tiers of government as they finance budget implementation, infrastructure projects and recurrent obligations amid continued efforts to strengthen non-oil revenue generation.
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