States Get N838bn as FAAC Allocation Climbs to N2.55trn

Federation Account Allocation Committee has distributed a massive ₦2.551 trillion among the Federal Government, 36 States, and 774 Local Government Councils as revenue for June 2026. This significant payout was the highlight of the committee’s meeting in Abuja on Wednesday, which was chaired by Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele. The high-profile gathering was attended by the Accountant General of the Federation, State Commissioners of Finance, and other committee members, according to a statement released by Efe Ovuakporie, the Head of Information and Public Relations Unit for the Federal Ministry of Finance.

The total distributable pool was anchored by ₦1.810 trillion in Statutory Revenue and ₦740.724 billion from Value Added Tax. When all allocations were finalized, Federal Government walked away with the largest share at ₦923.438 billion. The State Governments secured ₦838.208 billion, while the Local Government Councils received ₦591.390 billion. Additionally, oil-producing states benefited from an extra ₦197.610 billion distributed under the 13 percent derivation formula.

Looking at the specific revenue streams, the statutory portion yielded ₦849.366 billion for the Federal Government, ₦430.810 billion for States, and ₦332.136 billion for Local Governments. Meanwhile, the VAT pool contributed ₦74.072 billion to Federal Government, ₦407.398 billion to States, and ₦259.253 billion to Local Governments.

This bumper payout was supported by a gross revenue of ₦4.501 trillion generated in June, which included ₦3.701 trillion in statutory revenue and ₦799.746 billion in gross VAT. Notably, gross statutory revenue grew by a remarkable ₦1.049 trillion compared to May 2026. This impressive surge was fueled by strong performances in Companies Income Tax, Value Added Tax, Import Duty, Customs Excise Tariff Levies, Petroleum Royalties, Gas Flared Penalties, Rental Income, and miscellaneous oil revenue. This growth easily offset declines recorded in Petroleum Profit Tax, Hydrocarbon Tax, Mineral Royalties, and Fees. The VAT pool also saw healthy growth, climbing by ₦56.078 billion from May’s ₦743.668 billion to hit ₦799.746 billion in June.

What to Know:

The N2.551 trillion shared for June 2026 represents another major increase in the monthly revenues sustaining Nigeria’s federal, state and local governments, many of which depend heavily on FAAC transfers to pay salaries, fund infrastructure and meet recurrent obligations. The allocation came from N1.810 trillion in statutory revenue and N740.724 billion in VAT, while total gross collections reached N4.501 trillion, boosted by stronger company income tax, import duties, petroleum royalties, gas-flaring penalties and other oil receipts. The rise continues the pattern of larger nominal FAAC distributions recorded since the removal of petrol subsidies, exchange-rate adjustments and intensified tax and customs collections, although inflation and the weakened naira have reduced the real purchasing power of the allocations. Critically, the revenue surge will have little meaning for citizens unless all three tiers transparently convert the windfall into improved public services, jobs and measurable infrastructure.

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