The Federation Account Allocation Committee (FAAC) has shared a total of N2.55 trillion among the federal government, the 36 states and the 774 local government councils (LGCs) as revenue allocation for June 2026.

The distribution was approved at the committee’s July meeting held in Abuja on Wednesday, according to a statement issued by the Director of Press and Public Relations in the Office of the Accountant-General of the Federation, Bawa Mokwa.

According to the statement, the distributable revenue comprised N1.8 trillion from statutory revenue and N740.72 billion from Value Added Tax (VAT).

FAAC said the federation account recorded a gross revenue of N4.5 trillion in June. From the amount, N160.74 billion was deducted as cost of collection, while N1.78 trillion was set aside for transfers, interventions and refunds before the balance was shared among the three tiers of government.

Of the N2.55 trillion distributable revenue, the federal government received N923.43 billion, the 36 states received N838.2 billion, while the 774 local government councils received N591.39 billion.

The committee also allocated N197.61 billion to oil-producing states as 13 per cent derivation revenue.

A breakdown of the statutory revenue showed that the N1.8 trillion distributable statutory revenue was shared with the federal government receiving N849.36 billion, the states N430.81 billion, and local governments N332.13 billion, while N197.61 billion was paid to oil-producing states as derivation revenue.

Similarly, from the N740.72 billion distributable VAT revenue, the federal government received N74.07 billion, the states received N407.39 billion, while local governments got N259.25 billion.

The committee reported a significant improvement in revenue performance during the month, noting that gross statutory revenue increased to N3.7 trillion in June from N2.65 trillion recorded in May, representing a rise of N1.04 trillion.

Gross VAT revenue also rose to N799.74 billion in June from N743.68 billion in May, reflecting an increase of N56.07 billion, or 7.5 per cent.

FAAC attributed the improved revenue performance to higher collections from Company Income Tax (CIT), Capital Gains Tax (CGT), Stamp Duties, petroleum royalties, gas flaring penalties, rents, miscellaneous oil revenue (MOR), Value Added Tax (VAT), import duty and Common External Tariff (CET) levies.

However, the committee noted that collections from Petroleum Profit Tax (PPT), Hydrocarbon Tax (HT), mineral royalties and mining fees declined during the period, while excise duty recorded only a marginal increase.