FAAC records improved statutory revenue of ₦4.359trn  in July 2026

… approves ₦3.007trn for FG, States, LGAs amist N4.359trin revenue 

By Onu Okorie

Federation Account Allocation Committee FAAC  has recorded a significant improvement in statutory revenue, with gross statutory revenue in the month of July 2026 rising to ₦4.359 trillion from ₦3.700 trillion in June. This indicates an increase of ₦658.087 billion which  represents 17.8 per cent month-on-month growth.

The figure was disclosed in Abuja by the Director of Press and Public Relations at the Office of the Accountant-General of the Federation, Bawa Mokwa.

However, FAAC approved the disbursement of ₦3.007 trillion to the Federal Government, the 36 states and the 774 local government councils as revenue for July 2026.

Breakdown of the revenue showd that the Gross Value Added Tax VAT revenue, however, remained broadly stable at ₦793.968 billion in July, compared with ₦799.746 billion in June. The ₦5.778 billion decline represents a marginal 0.7 per cent decrease, indicating continued resilience in consumption-tax receipts. FAAC urged governments to use the current period of stronger revenue flows to implement reforms capable of delivering long-term fiscal stability.

Key priorities identified included diversifying internally generated revenue beyond a narrow tax base, identifying and putting idle government assets to productive use, expanding state and national economic activity, and improving the availability of official state-level economic data.

The Committee also stressed the importance of creating a stable and predictable business environment to attract investment, while maintaining sustained investment in education and healthcare as part of broader human-capital development.

It further called for stronger institutional systems, including timely, audited and transparent public accounts.

All tiers of government were encouraged to institutionalise measures such as comprehensive asset registers, payroll verification and the timely publication of audited accounts within the next 12 months.

FAAC also reaffirmed its commitment to full, transparent and timely remittance of collectible revenue by all revenue-generating agencies into the Federation Account ahead of the planned accounts reconciliation exercise.

The Committee said continued discipline in revenue collection and remittance across Ministries, Departments and Agencies would be critical to sustaining the statutory revenue gains recorded in July.

It also reiterated support for reforms aimed at improving the predictability and growth of allocations to the Federal Government, states and local governments.

According to the FAAC communiqué, the increase in statutory revenue was supported by stronger collections across several oil and non-oil revenue streams.

Petroleum Profit Tax (PPT), Hydrocarbon Tax (HT), Companies Income Tax (CIT), Capital Gains Tax (CGT), Stamp Duty Tax (SDT), Petroleum Royalties, Mineral Royalties, Excise Duty and Gas Flared Penalty all recorded significant increases during the month.

The gains were partly offset by declines in VAT, Import Duty, Common External Tariff (CET) Levies, Rental of Gas Flared Fee and Miscellaneous Oil Revenue.

FAAC said it would continue to work with revenue-generating agencies to address collection gaps and strengthen remittance discipline.

Beyond the July revenue allocation, the August 2026 FAAC meeting, held in Owerri, Imo State, placed strong emphasis on turning the recent increase in federation revenue into sustainable fiscal strength for all tiers of government.

The meeting was held on the margins of the ongoing National Council of Federation and Economic Development (NACOFED) and included a dedicated retreat for state Commissioners of Finance and Accountants-General on subnational fiscal fitness.

Participants reviewed the state of the economy, fiscal governance and the financial position of federal and subnational governments.

The meeting noted that gross FAAC allocations have increased significantly over the past three years, with subsidy removal, exchange-rate unification and tax reforms identified as major drivers of the increase.

The session also highlighted the impact of the Nigeria Tax Act 2025, which took effect on January 1, 2026.

Under the new framework, states’ share of VAT revenue increased from 50 per cent to 55 per cent, while the Federal Government’s share fell from 15 per cent to 10 per cent.

In addition, 30 per cent of the states’ VAT pool is now allocated according to the place of consumption rather than the registered headquarters of companies. The change is designed to more directly link economic activity within a state to the revenue it receives from the federation.

pgx