The Federation Account Allocation Committee (FAAC) has shared N2.55 trillion among the Federal Government, state governments and local government councils from June 2026 revenue.
This marks the highest monthly allocation so far this year as stronger tax collections and oil-related revenues boosted the distributable pool.
Details of the distribution were contained in a statement signed by the Director of Press and Public Relations in the Office of the Accountant-General of the Federation, Bawa Mokwa, following the July 2026 meeting of FAAC held in Abuja on Wednesday.
It showed that the June allocation increased by N250 billion, or 10.9 per cent, from the N2.3 trillion distributed from May revenue, extending the steady rise in federation revenue this year.
Pinnacle Daily can report that the N2.3 trillion shared from May revenue was N43 billion higher than the N2.26 trillion distributed from April revenue, while the April allocation exceeded the N2.04 trillion shared from March revenue by N217 billion.
Also, the March distribution increased by N150 billion, from the N1.89 trillion shared from February revenue.
“A total sum of N2.55trn, being June 2026 Federation Account Revenue, has been shared to the Federal Government, States and the Local Government Councils,” it stated.
Distributable revenue comprised N1.81 trillion from statutory revenue and N740.72 billion from Value Added Tax revenue.
Gross revenue available in June stood at N4.5 trillion. Of this amount, N160.74 billion was deducted as collection costs, while N1.79 trillion was recorded as transfers and refunds.
Statutory revenue recorded a sharp increase during the month, rising to N3.7 trillion in June from N2.65 trillion in May, an increase of N1.05 trillion.
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Value Added Tax revenue also improved, climbing to N799.75 billion from N743.69 billion in May.
“This is higher than the N743.688 billion available in May by N56.078 billion,” the communiqué stated.
FAAC attributed the stronger revenue performance to improved collections from key tax and oil-related sources.
“In June 2026, Companies Income Tax, CGT, SDT, Petroleum Royalties, Gas Flared, Rental & MOR, Value Added Tax, Import Duty and CET Levies increased significantly while Petroleum Profit Tax, Hydrocarbon Tax, Mineral Royalties and Fees decreased considerably. Excise Duty increased only marginally,” it stated.
From the N2.55 trillion shared for the month, the Federal Government received N923.44 billion, while the 36 states received N838.21 billion. The 774 local government councils got N591.39 billion, and oil-producing states received N197.61 billion as 13 per cent derivation revenue.
Of the N1.81 trillion statutory revenue, the Federal Government received N849.37 billion, states got N430.81 billion, and local government councils received N332.14 billion. Oil-producing states also received N197.61 billion as derivation revenue.
From the N740.72 billion distributable Value Added Tax revenue, the Federal Government received N74.07 billion, states received N407.4 billion, while local government councils got N259.25 billion.
In a recent analysis, Pinnacle Daily found that rising FAAC allocations have reshaped states’ revenue profile. While states are receiving record federal transfers, internally generated revenue, despite growing in absolute terms, is failing to keep pace, raising concerns over deepening dependence on federal allocations instead of stronger local revenue generation.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X