The Federation Account recorded a major boost in revenue in July 2026, with gross revenue rising to ₦4.359 trillion, up 17.8 per cent from the ₦3.700 trillion recorded in June. The increase highlights stronger revenue inflows from both oil and non-oil sources, even as the government continues efforts to improve collections and reduce revenue leakages.
The Federation Account Allocation Committee (FAAC) announced the figures at its monthly meeting in Owerri, Imo State, where it approved the sharing of ₦3.007 trillion among the Federal Government, 36 states and 774 local government councils as revenue for July. The latest allocation provides additional fiscal space for the three tiers of government as they grapple with rising spending needs and economic pressures.
According to the Office of the Accountant-General of the Federation, the improved revenue performance was supported by stronger collections from Petroleum Profit Tax, Hydrocarbon Tax, Companies Income Tax, Capital Gains Tax, Stamp Duty, petroleum royalties, mineral royalties, excise duty and gas-flaring penalties. VAT, however, slipped slightly to ₦793.968 billion from ₦799.746 billion in June, a marginal decline of 0.7 per cent.
FAAC said the revenue gains reflected improved compliance and greater collection efficiency across several revenue streams, although declines in VAT, Import Duty, Common External Tariff levies, rental of gas-flared fees and miscellaneous oil revenue limited the overall increase. The committee said it would continue working with revenue-generating agencies to close collection gaps, strengthen remittance discipline and ensure that all collectible revenues are paid into the Federation Account.
The July performance also reinforces the government’s push to diversify public revenue beyond crude oil through tax reforms and stronger non-oil revenue mobilisation. FAAC said sustained growth in statutory revenue would depend on continued discipline by Ministries, Departments and Agencies, while reaffirming its commitment to predictable and timely allocations to the three tiers of government. If the momentum is maintained, stronger revenue collection could provide states and local councils with greater capacity to fund public services and development projects.
source: newtelegraph
