𝗝une 𝟮𝟬𝟮𝟲 Allocation: 𝗙𝗚, 𝗦𝗧𝗔𝗧𝗘𝗦, 𝗟𝗚𝗦 Share 𝗡𝟮.𝟱𝟱𝗢 𝗧rillion

Bukola ELUFADEJIN

The Federation Account Allocation Committee (FAAC) has shared a total of ₦2.550 trillion as revenue generated in June 2026 among the Federal Government, the 36 states and the 774 local government councils.

The latest allocation is ₦250 billion higher than the amount shared for the previous month, representing an increase of 10.9 per cent. The improvement in revenue was driven by stronger collections from Companies Income Tax (CIT), Capital Gains Tax (CGT), Stamp Duty, petroleum royalties, gas flaring, rental income, Minimum Operating Revenue, Value Added Tax (VAT), import duties and Common External Tariff (CET) levies.

The Director of Press and Public Relations at the Office of the Accountant-General of the Federation (OAGF), Mr. Bawa Mokwa, said the revenue distribution was approved during the July 2026 Federation Account Allocation Committee meeting held in Abuja.

According to him, “the ₦2.550 trillion total distributable revenue comprised distributable statutory revenue of ₦1.809 trillion and distributable Value Added Tax (VAT) revenue of ₦740.724 billion.”

The FAAC communiqué explained that ₦4.500 trillion was recorded as total gross revenue for June 2026. From this amount, ₦160.744 billion was deducted as the cost of revenue collection, while ₦1.789 trillion went to transfers and refunds before the balance was shared among the three tiers of government.

The committee also reported a strong increase in statutory revenue during the month. It said ₦3.700 trillion was generated as gross statutory revenue in June, compared to ₦2.651 trillion in May, representing an increase of ₦1.049 trillion.

VAT collections also improved during the month. Gross VAT revenue stood at ₦799.746 billion in June, up from ₦743.688 billion recorded in May, an increase of ₦56.078 billion.

From the total distributable revenue of ₦2.550 trillion, the Federal Government received ₦923.438 billion, while the 36 state governments shared ₦838.208 billion.

The 774 local government councils received ₦591.390 billion, while ₦197.610 billion, representing the constitutionally approved 13 per cent derivation, was paid to oil-producing states.

Breaking down the statutory revenue allocation of ₦1.809 trillion, the Federal Government received ₦849.366 billion, the states got ₦430.810 billion, while local government councils received ₦332.136 billion. The oil-producing states also received ₦197.610 billion as derivation from mineral revenue.

From the distributable VAT revenue of ₦740.724 billion, the Federal Government received ₦74.072 billion, the states shared ₦407.398 billion, while local government councils received ₦259.253 billion.

FAAC also gave a breakdown of the performance of different revenue sources during the month. It said collections from Companies Income Tax, Capital Gains Tax, Stamp Duty, petroleum royalties, gas flaring, rental income, Minimum Operating Revenue, VAT, import duties and CET levies all recorded noticeable increases.

However, the committee noted that receipts from Petroleum Profit Tax (PPT), Hydrocarbon Tax (HT), mineral royalties and related fees declined during the period, while revenue from excise duties posted only a slight increase.