The Federation Account Allocation Committee (FAAC) has distributed N2.550 trillion to the Federal Government, state governments and local government councils as revenue allocation for June 2026, after gross federation revenue surged 32.6% month-on-month to N4.500 trillion.

The allocation was announced in a statement issued on Wednesday by the Director of Press and Public Relations in the Office of the Accountant-General of the Federation (OAGF), Mr. Bawa Mokwa, following the July 2026 FAAC meeting in Abuja.

The distributable revenue comprised N1.809 trillion from statutory revenue and N740.724 billion from Value Added Tax (VAT), representing the two major revenue streams shared among the three tiers of government.

What the data is saying

FAAC disclosed that gross revenue available for the month stood at N4.500 trillion, from which deductions were made for collection costs, transfers and refunds before arriving at the distributable pool.

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According to the communiqué, this was more than the sum of N2.651 trillion received in the preceding month by N1.049 trillion, referring to the increase in gross statutory revenue, which rose to N3.700 trillion in June from N2.651 trillion in May.

  • VAT receipts also recorded an increase during the month. The communiqué stated, “This is higher than the N743.688 billion available in the month of May by N56.078 billion,” as gross VAT revenue increased to N799.746 billion in June.

Overall, N160.744 billion was deducted as the cost of collection, while N1.789 trillion went to transfers and refunds, leaving N2.550 trillion for distribution among the three tiers of government.

More insights

A breakdown of the allocation shows that all three tiers of government received higher disbursements, while oil-producing states also benefited from an increase in derivation revenue.

  • Of the total distributable revenue, the Federal Government received N923.438 billion, while the 36 state governments received N838.208 billion. The 774 local government councils received N591.390 billion, while N197.610 billion was distributed to oil-producing states as the constitutionally mandated 13 per cent derivation revenue.
  • A further breakdown of the N1.809 trillion statutory revenue showed that the Federal Government received N849.366 billion, the state governments received N430.810 billion, and the local government councils received N332.136 billion. Oil-producing states also received N197.610 billion as derivation revenue.

Similarly, from the N740.724 billion distributable VAT revenue, the Federal Government received N74.072 billion, while the state governments were allocated N407.398 billion. The local government councils received N259.253 billion from the VAT pool.

What you should know

The June revenue allocation reflects stronger federally collected revenue, driven by significant improvements in statutory receipts and VAT collections, providing additional fiscal resources for all three tiers of government.

  • On June 18, Nairametrics reported that FAAC distributed a total of N2.3 trillion to the Federal Government, state governments and local government councils, after it recorded a gross revenue of N3.395 trillion for May.
  • The increase in the shared allocation, from N2.3 trillion, to N2.5 trillion, was, according to FAAC, due to a significant increase in collections from Companies Income Tax (CIT), Capital Gains Tax (CGT), Stamp Duties (SDT), Petroleum Royalties, Gas Flared, Rental & MOR, Value Added Tax (VAT), Import Duty and CET Levies.
  • However, Petroleum Profit Tax (PPT), Hydrocarbon Tax (HT), Mineral Royalties and Fees declined considerably, while Excise Duty recorded only a marginal increase.

The improvement in key revenue streams pushed June’s distributable allocation to N2.550 trillion, up from N2.3 trillion shared in May, giving the Federal Government, states and local governments additional fiscal resources to fund public services and infrastructure.