The Federal Government, the 36 state governments and 774 local government councils have shared N3.007 trillion from the Federation Account as revenue for July 2026.

The allocation was approved by the Federation Account Allocation Committee (FAAC) at its monthly meeting held in Owerri, Imo State.

The latest distribution came as gross statutory revenue recorded a significant increase during the month.

According to Bawa Mokwa, Director of Press and Public Relations at the Office of the Accountant-General of the Federation, gross statutory revenue rose to N4.359 trillion in July from N3.700 trillion in June.

This represents an increase of N658.087 billion, equivalent to 17.8 per cent.

FAAC attributed the improvement to stronger collections from several revenue sources, including Petroleum Profit Tax, Hydrocarbon Tax, Companies Income Tax, Capital Gains Tax and Stamp Duty.

Increased receipts were also recorded from petroleum royalties, mineral royalties, excise duty and gas-flaring penalties.

However, some revenue streams recorded declines during the period. Gross Value Added Tax (VAT) revenue fell slightly to N793.968 billion in July from N799.746 billion in June, representing a reduction of N5.778 billion or 0.7 per cent.

Import duties, Common External Tariff levies, gas-flaring fee rentals and miscellaneous oil revenue also recorded declines, partly reducing the impact of the gains recorded in other areas.

Mokwa said FAAC would continue working with revenue-generating agencies to address collection gaps and improve the remittance of revenues into the Federation Account.

He also stressed the importance of broadening Nigeria’s revenue base beyond crude oil by strengthening tax administration and developing non-oil revenue sources.

FAAC further called for continued cooperation among the three tiers of government on fiscal policy, revenue sharing and wider economic development.

The committee noted that solid minerals and other non-oil royalty sources could provide additional opportunities for increasing government revenue.

The July allocation comes amid ongoing efforts by the Federal Government to improve revenue mobilisation and strengthen Nigeria’s fiscal position.

With the latest distribution, the three tiers of government are expected to use the increased resources to support public services, infrastructure and other development programmes across the country.