FG, States, LGs Share N2.55 Trillion as FAAC Revenue Surges

(FAAC. Photo Credit: TVC News)

The Federation Account Allocation Committee 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, with the funds distributed among the Federal Government, 36 states and 774 local government councils following the committee’s review of available revenue.

According to FAAC, the shared amount comprised ₦1.8 trillion from statutory revenue and ₦740.72 billion from Value Added Tax, with the Federation Account recording ₦4.5 trillion in gross revenue for June before deductions for collection costs, transfers, interventions and refunds.

From the allocation, the Federal Government received ₦923.43 billion, states received ₦838.2 billion, and local government councils received ₦591.39 billion, while oil-producing states also received ₦197.61 billion through the 13 per cent derivation arrangement.

FAAC reported a notable rise in statutory revenue, which grew from ₦2.65 trillion in May to ₦3.7 trillion in June, attributing the increase to stronger earnings from several major revenue sources.

Gross VAT revenue also climbed from ₦743.68 billion in May to ₦799.74 billion in June, representing a 7.5 per cent rise.

From the distributable VAT revenue, the Federal Government received ₦74.07 billion, states got ₦407.39 billion, and local councils received ₦259.25 billion.

The committee linked the improved performance to higher collections from Company Income Tax, Capital Gains Tax, Stamp Duties, petroleum royalties, VAT, import duties and other sources, even as receipts from Petroleum Profit Tax, Hydrocarbon Tax, mineral royalties and related fees declined.

FAAC said continued growth in revenue generation could improve government funding and strengthen public sector financing across the country.