The Federal Government, 36 states and 774 Local Government Councils shared N3.007tn from the Federation Account as revenue for July 2026, following a significant increase in statutory collections driven by stronger receipts from petroleum and non-oil taxes.
Key Highlights
- N3.007tn shared by the Federal Government, states and LGAs as July 2026 federation revenue.
- Gross statutory revenue rose by N658.087bn to N4.359tn.
- Statutory revenue increased 17.8 per cent compared with June.
- VAT revenue fell marginally by 0.7 per cent to N793.968bn.
- Petroleum and several non-oil revenue sources recorded higher collections.
- FAAC urged revenue agencies to close collection gaps and improve remittance discipline.
- Governments are being encouraged to turn higher allocations into infrastructure, services and stronger local economies.
The disbursement was approved at the August 2026 meeting of the Federation Account Allocation Committee (FAAC) held in Owerri, Imo State.
A statement issued on Tuesday by the Director of Press and Public Relations in the Office of the Accountant-General of the Federation, Bawa Mokwa, said gross statutory revenue increased to N4.359tn in July, from N3.700tn in June.
The increase of N658.087bn, representing 17.8 per cent, reflected stronger collections across several petroleum and non-oil revenue sources.
VAT Revenue Falls Marginally
Despite the increase in statutory collections, gross Value Added Tax (VAT) revenue declined slightly to N793.968bn in July from N799.746bn recorded in June.
The N5.778bn decline represents 0.7 per cent.
According to the FAAC communiqué, the relatively stable VAT collection indicated that consumption-tax receipts remained resilient during the month.
Petroleum, Tax Revenues Increase
The communiqué showed that Petroleum Profit Tax, Hydrocarbon Tax, Companies Income Tax, Capital Gains Tax, Stamp Duty Tax, petroleum royalties, mineral royalties, excise duty and gas flaring penalties recorded increases in July.
The gains were partly offset by declines in VAT, import duty, Common External Tariff (CET) levies, gas flaring-related rental fees and miscellaneous oil revenue.
Mokwa said the committee would continue monitoring revenue performance and working with revenue-generating agencies to improve collections.
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“The Committee will continue to monitor as it works with revenue-generating agencies to close collection gaps and improve remittance discipline,” he said.
Revenue Growth Raises Questions for States, LGAs
The latest increase in Federation Account revenue comes amid ongoing fiscal reforms, including the removal of petrol subsidy, foreign exchange reforms and efforts to expand Nigeria’s tax base.
However, the higher revenue also raises questions about whether increased allocations will translate into stronger state economies, better infrastructure and improved social services.
The FAAC meeting in Owerri was held on the sidelines of the National Council of Federation and Economic Development, bringing together finance commissioners and accountants-general to discuss the fiscal position of the federation.
Participants also examined measures for converting improved revenue performance into sustainable economic growth across the three tiers of government.
Government Outlines Six Areas for Fiscal Improvement
Mokwa said government officials were encouraged to focus on six areas considered important to improving fiscal performance.
These include improving internally generated revenue, strengthening and commercialising public assets, expanding economic activity, attracting private capital, investing in human capital and improving transparency in public finance.
The focus, according to the Federal Government, is to ensure that improved revenue collection translates into stronger public finances and better economic outcomes for Nigerians.
