Federation, states and LGs share N3tn as revenue surges
The Federal Government, 36 states, and 774 Local Government Councils have shared N3.007tn as federation revenue for July 2026, following a significant rise in statutory collections. The allocation was approved at the Federation Account Allocation Committee meeting in Owerri, Imo State, in August 2026. According to Bawa Mokwa, gross statutory revenue increased notably, though Value Added Tax saw a slight decline. The meeting also discussed fiscal reforms and changes to VAT distribution under the Nigeria Tax Act 2025.
What we know
- The Federation Account Allocation Committee approved the disbursement of N3.007tn for July 2026 at its August 2026 meeting in Owerri.
- Gross statutory revenue rose to N4.359tn in July 2026, up from N3.700tn in June 2026, marking a N658.087bn (17.8%) increase.
- Gross Value Added Tax revenue declined marginally to N793.968bn in July 2026 from N799.746bn in June 2026.
- The Nigeria Tax Act 2025, effective from January 1, 2026, altered VAT revenue distribution, increasing states’ share from 50% to 55% and reducing the Federal Government’s share from 15% to 10%.
- Bawa Mokwa emphasized the need for improved revenue collection, remittance discipline, and reforms to ensure long-term fiscal strength.
