The Federal Government, Nigeria’s 36 states and 774 local government councils shared N3.007 trillion in federation revenue for July 2026, following a significant increase in statutory revenue collections.
The allocation was approved at the August meeting of the Federation Account Allocation Committee (FAAC) held in Owerri, Imo State.
According to the Office of the Accountant-General of the Federation, gross statutory revenue increased to N4.359 trillion in July, up from N3.700 trillion in June. This represents a rise of N658.087 billion, or 17.8 per cent.
The increase was attributed largely to stronger collections from petroleum-related revenues and several non-oil tax sources.
However, Value Added Tax revenue recorded a slight decline, falling from N799.746 billion in June to N793.968 billion in July, a decrease of N5.778 billion, or 0.7 per cent.
FAAC said revenues from Petroleum Profit Tax, Hydrocarbon Tax, Companies Income Tax, Capital Gains Tax, Stamp Duty, petroleum royalties, mineral royalties, excise duty and gas-flaring penalties all increased during the month.
These gains were partly offset by lower collections from VAT, import duty, certain levies, gas-flaring fees and miscellaneous oil revenue.
The revenue increase comes amid ongoing fiscal reforms, including the removal of petrol subsidies, foreign exchange reforms and efforts to broaden Nigeria’s tax base.
Officials at the FAAC meeting, however, stressed that increased allocations should translate into sustainable economic development rather than simply higher government spending.
States were encouraged to improve internally generated revenue, commercialise public assets, attract private investment, strengthen human capital and improve transparency in public finances.
The meeting also discussed changes introduced by the Nigeria Tax Act 2025, which took effect in January 2026. Under the new framework, states’ share of VAT revenue increased from 50 per cent to 55 per cent, while the Federal Government’s share fell from 15 per cent to 10 per cent.
FAAC also noted that 30 per cent of the states’ VAT pool would be distributed based on where consumption takes place, rather than solely on the location of a company’s registered headquarters.
The committee said the new arrangement could encourage states to attract businesses, expand economic activity and strengthen their revenue bases.
FAAC further urged government agencies to ensure the full and timely remittance of revenues into the Federation Account, while calling for greater diversification into solid minerals and other non-oil revenue sources.
The committee said the major challenge was no longer simply sharing rising revenues but ensuring that the additional funds were invested productively to strengthen public finances, infrastructure and living standards.
.jpeg)
.jpeg "Sunayen kofofin aljanna guda takwas 8")
0 Comment about the Post: