FAAC Distributes Record ₦2.551 Trillion June Revenue to FG, States, LGs as Collections Surge

…Federal Government receives ₦923.4bn, states get ₦838.2bn, councils pocket ₦591.4bn amid improved revenue performance

Pan Afric Reporters

The Federation Account Allocation Committee (FAAC) has shared a total of ₦2.551 trillion as Federation Account revenue for June 2026 among the Federal Government, the 36 states and the 774 local government councils, following a significant increase in statutory and Value Added Tax (VAT) collections.

The details were contained in a press statement issued by the Federal Ministry of Finance and signed by Efe Ovuakporie, Head of Information and Public Relations, after the July 2026 FAAC meeting held in Abuja.

The meeting, chaired by the Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, was attended by the Accountant-General of the Federation, state commissioners of finance and other members of the committee.

According to the communiqué, the ₦2.551 trillion distributed comprised ₦1.810 trillion from Statutory Revenue and ₦740.724 billion generated from Value Added Tax (VAT).

A breakdown of the allocation showed that from the statutory revenue, the Federal Government received ₦849.366 billion, while the 36 state governments received ₦430.810 billion. The 774 local government councils received ₦332.136 billion, while oil-producing states were allocated ₦197.610 billion as 13 per cent derivation revenue.

From the VAT proceeds, the Federal Government received ₦74.072 billion, the states shared ₦407.398 billion, while the local government councils received ₦259.253 billion.

Overall, the Federal Government received a total allocation of ₦923.438 billion, state governments received ₦838.208 billion, local government councils got ₦591.390 billion, while ₦197.610 billion was distributed to oil-producing states under the 13 per cent derivation principle.

FAAC disclosed that the gross revenue available for June 2026 stood at ₦4.501 trillion, comprising ₦3.701 trillion in statutory revenue and ₦799.746 billion from VAT collections.

The committee attributed the strong revenue performance to significant improvements in statutory earnings during the month.

According to FAAC, gross statutory revenue increased by ₦1.049 trillion compared to the amount recorded in May 2026.

The increase was driven by stronger receipts from Companies Income Tax, Value Added Tax, Import Duty, Customs Excise Tariff Levies, Petroleum Royalties, Gas Flared Penalties, Rental Income and Miscellaneous Oil Revenue.

However, the committee noted that revenues generated from Petroleum Profit Tax (PPT), Hydrocarbon Tax, Mineral Royalties and Fees declined during the period.

FAAC also reported sustained growth in VAT collections, with gross VAT revenue rising from ₦743.668 billion in May to ₦799.746 billion in June, representing an increase of ₦56.078 billion.

The committee said the improved revenue profile reflects stronger fiscal performance and provides additional resources for the three tiers of government to finance development projects, public services and economic programmes across the country.