The Federal Government, State Governments and Local Government Councils have shared a total sum of ₦3.007 trillion, in revenue from the Federation Account for the month of July 2026.
The disbursement was made at the August 2026 Federation Account Allocation Committee (FAAC) meeting held in Owerri, Imo State capital.
FAAC convened the meeting in Owerri, on the margins of the ongoing National Council of Federation and Economic Development (NACOFED) – pairing the Committee’s routine monthly business with a broader push to strengthen fiscal fundamentals across Nigeria’s federating units.
Beyond approving the sharing of July 2026 revenue, the gathering was used to chart a path for states to convert Nigeria’s recent revenue growth into lasting fiscal strength, headlined by a dedicated retreat session for Commissioners of Finance and Accountant-General on subnational fiscal fitness.
According to a statement on Tuesday by the Director, Press and Public Relations, Office of the Accountant General of the Federation (OAGF), Bawa Mokwa, the month’s figures point to a strengthening underlying revenue base. Gross statutory revenue rose to ₦4.359 trillion in July 2026, up ₦658.087 billion – a 17.8% increase – from ₦3.700 trillion in June 2026, reflecting improved collection performance across oil and non-oil statutory sources. Gross VAT revenue held broadly steady at ₦793.968 billion, a marginal decline of ₦5.778 billion (0.7%) from ₦799.746 billion in June, suggesting consumption-tax receipts remain resilient month-on-month.
The communiqué issued by the Committee attributed the month’s gains to broad-based strength across several revenue lines. Petroleum Profit Tax (PPT), Hydrocarbon Tax (HT), Companies Income Tax (CIT), Capital Gains Tax (CGT), Stamp Duty Tax (SDT), Petroleum Royalties, Mineral Royalties, Excise Duty and Gas Flared Penalty all recorded significant increases in July 2026, pointing to firmer compliance and collection efficiency across both oil and non-oil channels.
These gains were partly offset by declines in Value Added Tax (VAT), Import Duty, CET Levies, Rental of Gas Flared Fee and Miscellaneous Oil Revenue, which the Committee will continue to monitor as it works with revenue-generating agencies to close collection gaps and improve remittance discipline.
Beyond the numbers, the Committee: Reaffirmed commitment to full, transparent and timely remittance of collectible revenue by all revenue-generating agencies into the Federation Account, ahead of the accounts reconciliation exercise for the period, Continued emphasis on diversifying the federation’s revenue base beyond oil, in line with ongoing tax administration and non-oil revenue mobilisation reforms, Alignment between FAAC’s technical work and the NACOFED platform, reinforcing coordination between the Federal Government and States on fiscal policy, revenue-sharing and shared economic development priorities, and Continued monitoring of solid minerals and other non-oil royalty streams as a growth area for future federation revenue.
The Committee noted that sustaining the statutory revenue gains recorded in July 2026 will depend on continued discipline in collection and remittance across Ministries, Departments and Agencies (MDAs), and reiterated its support for reforms aimed at improving the predictability and growth of allocations to all three tiers of government.
The FAAC session discussed state of the economy, fiscal governance, and federal and subnational fiscal fitness. The session set out the scale of the recent revenue windfall and called for deliberate reform to convert it into durable fiscal strength rather than a temporary gain.
The meeting noted that gross FAAC have risen significantly over the past three years driven by subsidy removal, exchange-rate unification and tax reform.
The session highlighted the impact of the Nigeria Tax Act 2025, effective 1 January 2026: states’ share of VAT revenue rises from 50% to 55% (the Federal Government’s falls from 15% to 10%), while 30% of the states’ VAT pool is now allocated by place of consumption rather than a company’s registered headquarters – directly linking a state’s own economic activity to the size of its federation allocation.
Federal and State Governments were urged to: diversifying own-source income beyond a narrow tax base, put idle state-owned assets to productive use, measure and expand the state and national economy, including through official state GDP data, stablise business environment and structured investor engagement, sustain investment in education and health as the foundation of future development, and timely, audit public accounts.
All tiers of government were encouraged to use the current period of strong revenue growth to institutionalise reforms including comprehensive asset registers, payroll verification, and timely publication of audited accounts over the next twelve months.
