The Federation Account Allocation Committee (FAAC) has distributed N2.55 trillion to the Federal Government, 36 states and the 774 local government councils for June 2026, following a sharp increase in federally collected revenue.
According to a statement issued on Wednesday by the Office of the Accountant-General of the Federation (OAGF), gross federation revenue rose by 32.6 per cent month-on-month to N4.5 trillion, up from N3.39 trillion recorded in May.
The distributable revenue comprised N1.809 trillion from statutory revenue and N740.724 billion from Value Added Tax (VAT).
FAAC said the gross revenue of N4.5 trillion was reduced after deductions for collection costs, transfers and refunds.
The committee disclosed that statutory revenue increased significantly to N3.7 trillion in June from N2.65 trillion in May, while gross VAT revenue rose to N799.75 billion, compared with N743.69 billion in the previous month.
A total of N160.74 billion was deducted as collection costs, while N1.79 trillion was used for transfers and refunds, leaving N2.55 trillion available for distribution.
From the total allocation:
- Federal Government: N923.44 billion
- State Governments: N838.21 billion
- Local Government Councils: N591.39 billion
- 13% Derivation to Oil-Producing States: N197.61 billion
A breakdown of the statutory revenue allocation showed the Federal Government received N849.37 billion, states received N430.81 billion, while local governments got N332.14 billion. Oil-producing states received N197.61 billion as derivation revenue.
From the VAT pool of N740.72 billion, the Federal Government received N74.07 billion, states received N407.40 billion, and local governments were allocated N259.25 billion.
The increase in June’s allocation reflects stronger revenue performance driven by improved collections from Companies Income Tax (CIT), Capital Gains Tax (CGT), Stamp Duties, Petroleum Royalties, Gas Flared, Rental and Miscellaneous Oil Revenue (MOR), VAT, Import Duties and CET Levies.
However, FAAC noted that Petroleum Profit Tax (PPT), Hydrocarbon Tax (HT), and Mineral Royalties and Fees recorded declines during the month, while excise duty posted only a marginal increase.
The latest distribution represents an increase from the N2.3 trillion shared for May, providing additional fiscal resources for the Federal Government, states and local governments to finance infrastructure, public services and other development programmes.
