Abuja – The Federation Account Allocation Committee (FAAC) has shared a total of ₦2.550 trillion among the Federal Government, the 36 state governments, and the 774 Local Government Councils as revenue generated in June 2026, marking the highest monthly allocation so far this year. The increased allocation reflects improved revenue performance from key tax and petroleum-related sources.
The revenue was approved at the FAAC meeting held in Abuja, where representatives of the Federal Government, states, and local governments considered the federation's earnings for the month.
According to the communiqué issued after the meeting, the distributable revenue was drawn from statutory revenue, Value Added Tax (VAT), Electronic Money Transfer Levy (EMTL), exchange difference, and other revenue sources available in the Federation Account. The higher allocation was driven by stronger collections from Companies Income Tax (CIT), Petroleum Profit Tax (PPT), oil and gas royalties, hydrocarbon-related revenues, and other federally collected taxes.
The Federal Government received the largest share of the allocation, while state governments and local government councils also received significant disbursements to support governance, infrastructure development, workers' salaries, healthcare, education, and other public services.
Oil-producing states additionally received their constitutionally guaranteed 13 percent derivation revenue, reflecting proceeds from mineral resources generated within their territories.
FAAC noted that despite fluctuations in some revenue streams, improved collections from petroleum-related taxes and corporate taxes strengthened the Federation Account during the period. The committee also reported that gross revenue available for June recorded an increase compared to previous months, continuing the positive revenue trend witnessed in recent allocations.
Economic analysts say the record allocation could provide fiscal relief for governments at all levels, particularly as they continue to implement infrastructure projects, meet salary obligations, and finance social intervention programmes. However, they also stressed the importance of prudent financial management, transparency, and increased investment in productive sectors to ensure that the additional revenue translates into tangible benefits for citizens.
The latest distribution underscores Nigeria's improving federally collected revenue profile and highlights the critical role of FAAC allocations in funding government operations across the country. With sustained improvements in revenue generation and effective fiscal management, stakeholders believe governments will be better positioned to deliver essential public services and stimulate economic growth.
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