…As FAAC Shares ₦3.007trn

The Federal Government recorded a significant increase in gross revenue collection in July 2026, with the Federation Account receiving ₦4.359 trillion, representing a 17.8 per cent increase over the ₦3.700 trillion recorded in June.

The Federation Account Allocation Committee (FAAC) disclosed this on Tuesday at its monthly meeting held in Owerri, Imo State, where it approved the disbursement of ₦3.007 trillion to the Federal Government, the 36 state governments and the 774 local government councils as revenue for July.

According to a statement by the Director of Press at the Office of the Accountant-General of the Federation (OAGF), Mallam Bawa Mokwa, the improved revenue performance was driven by increases across both oil and non-oil revenue sources.

Gross Value Added Tax (VAT) revenue stood at ₦793.968 billion in July, a marginal decline of ₦5.778 billion, or 0.7 per cent, from the ₦799.746 billion recorded in June. The figure, however, indicates that consumption-tax receipts remained relatively resilient month-on-month.

FAAC said significant increases were also recorded in 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.

The increases, according to the Committee, reflected improved compliance and collection efficiency across both oil and non-oil revenue streams.

The gains were partly offset by declines in VAT, Import Duty, Common External Tariff (CET) Levies, Rental of Gas Flared Fee and Miscellaneous Oil Revenue.

FAAC said it would continue to monitor the affected revenue lines while working with revenue-generating agencies to close collection gaps and strengthen remittance discipline.

The Committee also reaffirmed its commitment to the full, transparent and timely remittance of all collectable revenues by revenue-generating agencies into the Federation Account ahead of the reconciliation of the accounts for the period.

It said the July performance further demonstrated the government’s efforts to diversify the Federation’s revenue base beyond oil through ongoing tax administration and non-oil revenue mobilisation reforms.

FAAC added that the measures were aligned with the National Council on Finance and Economic Development (NACOFED) platform and aimed at strengthening coordination between the Federal Government and the states on fiscal policy, revenue sharing and shared economic development priorities.

The Committee, however, cautioned that sustaining the statutory revenue gains recorded in July would depend on continued discipline in revenue collection and remittance by Ministries, Departments and Agencies (MDAs).

It reiterated its support for reforms designed to improve the predictability and growth of allocations to the three tiers of government.

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