FAAC Distributes ₦2.55 Trillion to Federal, State and Local Governments for June 2026

The Federation Account Allocation Committee (FAAC) has shared a total of ₦2.550 trillion among the Federal Government, the 36 state governments and the 774 local government councils as revenue allocation for June 2026. The distribution was approved during the committee’s July 2026 meeting held in Abuja.

The Director of the Office of the Accountant General of the Federation, Bawa Mokwa, announced the allocation in a statement released on Wednesday, confirming that the funds were distributed from statutory revenue and Value Added Tax (VAT) collections for the month.

According to the FAAC communiqué, the ₦2.550 trillion distributable revenue consists of ₦1.809 trillion from statutory revenue and ₦740.724 billion generated from Value Added Tax (VAT).

The committee also disclosed that the Federation Account recorded a gross revenue of ₦4.500 trillion in June 2026. From this amount, ₦160.744 billion was deducted as the cost of revenue collection, while ₦1.789 trillion was set aside for transfers, interventions and refunds before the balance was distributed among the three tiers of government.

FAAC reported a significant increase in statutory revenue during the month. Gross statutory revenue rose to ₦3.700 trillion, representing an increase of ₦1.049 trillion compared to the ₦2.651 trillion generated in May 2026.

Value Added Tax collections also recorded steady growth. Gross VAT revenue stood at ₦799.746 billion in June, up by ₦56.078 billion from the ₦743.688 billion generated in the previous month.

From the total distributable revenue, the Federal Government received ₦923.438 billion, while the 36 state governments shared ₦838.208 billion. The 774 local government councils received ₦591.390 billion, while ₦197.610 billion, representing the statutory 13 percent derivation revenue, was allocated to oil-producing states.

A breakdown of the statutory revenue allocation shows that the Federal Government received ₦849.366 billion, state governments received ₦430.810 billion, and local government councils received ₦332.136 billion. Oil-producing states also received ₦197.610 billion as derivation revenue from mineral earnings.

For the Value Added Tax allocation, the Federal Government received ₦74.072 billion, while the states shared ₦407.398 billion. Local government councils received ₦259.253 billion from the VAT pool.

The committee further revealed that several major revenue sources posted stronger performances during the month. Collections from Companies Income Tax (CIT), Capital Gains Tax (CGT), Stamp Duties (SDT), Petroleum Royalties, Gas Flared penalties, Rental and Miscellaneous Oil Revenue (MOR), Value Added Tax (VAT), Import Duties and Common External Tariff (CET) Levies all recorded notable increases.

However, revenue generated from Petroleum Profit Tax (PPT), Hydrocarbon Tax (HT), Mineral Royalties and government fees declined during the same period, while Excise Duty recorded only a slight increase.

The latest FAAC distribution reflects continued improvements in government revenue generation, driven by stronger tax collections and increased statutory earnings. The higher allocation is expected to provide additional fiscal support for the Federal Government, state governments and local councils as they fund infrastructure projects, public services and other developmental programmes across the country.