FG, States, LGAs Share ₦2.55 tn June Revenue as FAAC Reports Higher Tax, Oil Receipts

FG, States, LGAs Share ₦2.55 tn June Revenue as FAAC Reports Higher Tax, Oil Receipts

By Jamila Muhammed

The federal government, along with the 36 states and the 774 local government councils, shared ₦2.55 trillion in revenue allocation for June 2026, which was made possible by an increase in statutory revenue and Value Added Tax (VAT) collections, according to the Federation Account Allocation Committee (FAAC).

The allocation was approved at FAAC’s July meeting held on Wednesday in Abuja.

According to a communiqué issued after the meeting, the distributable revenue comprised ₦1.809 trillion from statutory revenue and ₦740.724 billion from VAT.

“A total sum of ₦2.550 trillion, being June 2026 Federation Account revenue, has been shared with the federal government, states and the local government councils,” the communiqué said.

The committee said ₦4.500 trillion accrued to the Federation Account during the month. Out of the amount, ₦160.744 billion was deducted as the cost of revenue collection, while ₦1.789 trillion was earmarked for transfers and refunds before the balance was distributed.

Under the approved sharing formula, the federal government received ₦923.438 billion, while state governments got ₦838.208 billion. The 774 local government councils received ₦591.390 billion, while ₦197.610 billion, representing the 13 per cent derivation fund, was allocated to oil-producing states.

Of the ₦1.809 trillion distributable statutory revenue, the federal government received ₦849.366 billion, the states ₦430.810 billion, and local governments ₦332.136 billion. Oil-producing states also received ₦197.610 billion as derivation revenue.

From the ₦740.724 billion shared from VAT, the federal government received ₦74.072 billion, states received ₦407.398 billion, and local governments received ₦259.253 billion.

FAAC attributed the higher allocation to improved revenue inflows during the month.

It said gross statutory revenue increased to ₦3.700 trillion in June from ₦2.651 trillion recorded in May, representing an increase of ₦1.049 trillion.

Gross VAT revenue also rose to ₦799.746 billion in June, up from ₦743.688 billion in the preceding month.

“Gross statutory revenue of ₦3.700 trillion was received for the month of June 2026. “This amount was ₦1.049 trillion higher than the ₦2.651 trillion received in the preceding month,” the communiqué stated.

The committee also reported increases in receipts from Companies Income Tax (CIT), Capital Gains Tax (CGT), Stamp Duties, Petroleum Royalties, Gas Flared, Rental and Miscellaneous Oil Revenue (MOR), VAT, Import Duty and Common External Tariff (CET) levies.

However, it noted that collections from Petroleum Profit Tax (PPT), Hydrocarbon Tax (HT), mineral royalties and related fees declined during the period, while excise duty recorded only a marginal increase.

The latest allocation comes as governments at all levels continue to rely on FAAC disbursements to finance recurrent expenditure and capital projects amid efforts to improve non-oil revenue generation.