FAAC Disburses ₦2.55tn June Revenue Among Governments
FAAC distributes ₦2.55 trillion in June revenue to Nigeria’s federal, state and local governments after improved collections.
The Federation Account Allocation Committee (FAAC) has shared ₦2.55 trillion in June 2026 revenue among Nigeria’s three tiers of government.
The allocation was approved during FAAC’s July meeting in Abuja on Wednesday. The funds were distributed among the Federal Government, 36 states, and 774 local government councils following the committee’s review of available revenue.
FAAC said the shared amount included ₦1.8 trillion from statutory revenue and ₦740.72 billion from Value Added Tax (VAT). The Federation Account recorded ₦4.5 trillion in gross revenue during June, before deductions for collection costs, transfers, interventions, and refunds.
The FAAC revenue allocation gave the Federal Government ₦923.43 billion, while state governments received ₦838.2 billion. Local government councils received ₦591.39 billion. Oil-producing states also collected ₦197.61 billion through the 13 per cent derivation revenue arrangement.
FAAC reported a strong rise in statutory revenue, which increased from ₦2.65 trillion in May to ₦3.7 trillion in June. The committee said the increase reflected stronger earnings from several major revenue sources.
The Nigeria revenue sharing process also benefited from higher VAT collections. Gross VAT revenue climbed from ₦743.68 billion in May to ₦799.74 billion in June, representing a 7.5 per cent increase.
From the distributable VAT revenue, the Federal Government received ₦74.07 billion, states received ₦407.39 billion, and local councils received ₦259.25 billion.
FAAC linked the improved performance to higher collections from Company Income Tax, Capital Gains Tax, Stamp Duties, petroleum royalties, VAT, import duties, and other sources. However, receipts from Petroleum Profit Tax, Hydrocarbon Tax, mineral royalties, and related fees declined.
The committee said continued growth in revenue generation could improve government funding and strengthen public sector financing nationwide.
How might higher FAAC allocations affect development projects across Nigeria?
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