By Tony Obiechina, Abuja
Federation Account Allocation Committee (FAAC) has approved the disbursement of a total of ₦3.007 trillion to the Federal Government, the 36 State Governments and the 774 Local Government Councils as revenue for July 2026.
The federal government in a statement by Bawa Mokwa, Director of Press and Public Relations stated that 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.
It revealed a reflection of 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 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.
According to the statement, FAAC session held in Owerri 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 communiqué 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.
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