Over two trillion naira has been shared among the Federal Government, states and local government councils by the Federation Account Allocation Committee (FAAC) for June 2026, reflecting stronger revenue performance driven by higher statutory revenue and Value Added Tax (VAT) collections.
The allocation is higher than the N2.30 trillion shared for May, representing an increase of about N250 billion, largely on the back of stronger statutory revenue and improved VAT collections.
A communiqué issued after the FAAC meeting in Abuja and signed by the Director of Press and Public Relations, Office of the Accountant-General of the Federation, Bawa Mokwa, shows that the distributable revenue comprised N1.809 trillion from statutory revenue and N740.7 billion from Value Added Tax.
The Federal Government received N923.4 billion, state governments received N838.2 billion, while the 774 local government councils shared N591.4 billion. Oil-producing states also received N197.6 billion as 13 per cent derivation revenue.
The report further indicates that gross statutory revenue rose sharply to N3.7 trillion in June from N2.65 trillion in May, an increase of more than N1 trillion.
Similarly, gross VAT collections climbed to N799.7 billion from N743.7 billion recorded in the previous month.
FAAC attributed the stronger revenue performance to significant increases in Companies Income Tax, Capital Gains Tax, Stamp Duties, petroleum royalties, gas flaring penalties, import duties, CET levies and VAT.
However, receipts from Petroleum Profit Tax, Hydrocarbon Tax, Mineral Royalties and related fees declined during the period, while excise duty posted only a marginal increase.
The higher June allocation is expected to strengthen government liquidity across the federal, state and local levels, although analysts say sustained revenue growth and prudent fiscal management remain critical to addressing Nigeria’s development and infrastructure financing needs.
Editor: Ada Ononye
