The June FAAC Allocation climbed to ₦2.55 trillion, with the Federal Government, 36 state governments and the 774 local government councils receiving a combined share of the Federation Account revenue for June 2026. The latest allocation represents a ₦250 billion increase, or 10.9 percent, compared to the ₦2.3 trillion distributed in May 2026.
Key Highlights
- June FAAC Allocation increased to ₦2.55 trillion, up by ₦250 billion from May.
- Federal Government received ₦923.44 billion.
- States shared ₦838.21 billion.
- Local government councils received ₦591.39 billion.
- Oil-producing states got ₦197.61 billion as 13 percent derivation.
- Higher collections from VAT, Companies Income Tax, Customs duties and petroleum royalties boosted revenue.
- Receipts from Petroleum Profit Tax (PPT), Hydrocarbon Tax and mineral royalties declined during the month.
The disbursement was approved at the July 2026 meeting of the Federation Account Allocation Committee (FAAC) held in Abuja.
According to a statement issued by the Director of Press and Public Relations in the Office of the Accountant-General of the Federation, Bawa Mokwa, the distributable revenue consisted of ₦1.81 trillion from statutory revenue and ₦740.72 billion generated from Value Added Tax (VAT).
Breakdown of June FAAC Allocation
The allocation showed that the:
Federal Government received ₦923.44 billion.
36 State Governments shared ₦838.21 billion.
774 Local Government Councils received ₦591.39 billion.
Oil-producing states were allocated ₦197.61 billion as the statutory 13 per cent derivation fund.
The distribution reflects continued growth in federally collected revenue available for the three tiers of government.
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Gross Revenue Hits ₦4.5 Trillion
FAAC disclosed that Nigeria generated a gross revenue of ₦4.5 trillion in June 2026.
Before the distribution, ₦160.74 billion was deducted as the cost of revenue collection, while ₦1.79 trillion was applied to transfers, interventions and refunds, leaving the balance for distribution among the Federal Government, states and local governments.
Revenue Growth Driven by Tax and Customs Collections
The committee attributed the higher June FAAC Allocation to improved revenue performance across several key sectors.
Revenue growth was driven by increased collections from:
Companies Income Tax (CIT)
Value Added Tax (VAT)
Petroleum royalties
Import duties
Nigeria Customs Service collections
However, FAAC noted that earnings from Petroleum Profit Tax (PPT), Hydrocarbon Tax and mineral royalties recorded declines during the period.
Boost for Government Spending
The improved statutory and VAT revenues pushed the June FAAC Allocation to one of the highest monthly disbursements recorded in 2026, providing additional fiscal resources for the Federal Government, state governments and local government councils to fund infrastructure, public services and development programmes.
The increased allocation is expected to strengthen government spending across critical sectors, even as authorities continue efforts to improve non-oil revenue generation and enhance fiscal sustainability.
