The Federal Government, 36 state governments and 774 local government councils shared a record ₦3.007 trillion in Federation Account revenue for July 2026, as stronger petroleum and non-oil tax collections boosted statutory revenue.
The allocation was approved at the August meeting of the Federation Account Allocation Committee (FAAC), held in Owerri, Imo State.
According to a statement issued on Tuesday by Bawa Mokwa, Director of Press and Public Relations at the Office of the Accountant-General of the Federation (OAGF), gross statutory revenue increased to ₦4.359 trillion in July from ₦3.700 trillion in June.
The ₦658.087 billion increase represents a 17.8 per cent month-on-month rise and reflects stronger collections across several oil and non-oil revenue streams.
July’s ₦3.007 trillion allocation was about ₦457 billion higher than the ₦2.55 trillion shared in June, making it the highest monthly FAAC distribution recorded so far in 2026.
The FAAC figures showed increases in Petroleum Profit Tax, Hydrocarbon Tax, Companies Income Tax, Capital Gains Tax, Stamp Duty Tax, petroleum royalties, mineral royalties, excise duty and gas-flaring penalties.
However, the increase was partly offset by weaker receipts from some revenue lines.
Gross Value Added Tax (VAT) revenue fell marginally to ₦793.968 billion in July from ₦799.746 billion in June, a decline of ₦5.778 billion, or 0.7 per cent.
Import duty, Common External Tariff levies, rental income from gas-flaring fees and miscellaneous oil revenue also recorded declines during the month.
FAAC said it would continue working with revenue-generating agencies to close collection gaps and improve remittance discipline.
The July distribution takes the total amount shared by the three tiers of government through FAAC in the first seven months of 2026 to approximately ₦15.997 trillion.
Monthly allocations stood at about ₦1.96 trillion in January, ₦1.89 trillion in February, ₦2.04 trillion in March, ₦2.25 trillion in April, ₦2.30 trillion in May and ₦2.55 trillion in June before rising to ₦3.007 trillion in July.
The latest increase comes amid efforts by the Federal Government to strengthen revenue mobilisation following major fiscal reforms, including petrol subsidy removal, foreign-exchange reforms and changes to Nigeria’s tax framework.
The July allocation also comes under the new tax regime introduced by the Nigeria Tax Act 2025, which took effect on January 1, 2026.
Under the revised VAT revenue-sharing formula, 10 per cent of distributable VAT revenue goes to the Federal Government, 55 per cent to states and the Federal Capital Territory, and 35 per cent to local governments. The law also provides for a consumption-based component in the distribution of VAT revenue.
The changes are designed to strengthen the link between economic activity and revenue distribution while giving states a larger share of VAT receipts.
Beyond the monthly revenue distribution, the Owerri meeting placed emphasis on how governments can convert stronger Federation Account receipts into lasting fiscal improvements.
The meeting was held alongside the National Council on Finance and Economic Development (NACOFED), with finance commissioners and accountants-general discussing the fiscal health of the federation and measures to strengthen subnational economies.
Officials were urged to improve internally generated revenue, strengthen and commercialise public assets, expand economic activity, attract private capital, invest in human capital and improve transparency in public finances.
FAAC also stressed the need to sustain improvements in revenue collection and remittance across government agencies.
For the three tiers of government, the challenge is increasingly shifting from securing larger monthly allocations to ensuring that higher revenues are translated into productive investment, stronger public finances and improved economic outcomes.
