The decision was taken at the FAAC meeting held in Owerri, Imo State.
From the total amount, the Federal Government got ₦1.146 trillion. The 36 state governments received ₦943.352 billion, while the 774 local government councils shared ₦673.649 billion.
In addition, ₦243.478 billion was paid out as 13% derivation to oil-producing states.
According to Bawa Mokwa, Director of Press and Public Relations in the Office of the Accountant-General of the Federation, the July figures show that the country’s revenue base is getting stronger.
Gross statutory revenue rose to ₦4.359 trillion in July, up by ₦658.087 billion or 17.8% from ₦3.700 trillion recorded in June 2026. Mokwa said this was due to better collections from both oil and non-oil sources.
Gross VAT revenue was ₦793.968 billion, a slight drop of ₦5.778 billion or 0.7% from ₦799.746 billion in June. The committee said this shows that consumption tax receipts remain steady.
FAAC also discussed the economy, fiscal discipline, and how well both federal and state governments are managing finances. Members agreed that the recent rise in revenue should not be treated as a short-term gain. They called for reforms that will turn it into lasting fiscal strength.
The committee noted that federation revenue has grown a lot in the last three years. This was linked to subsidy removal, exchange rate unification, and tax reforms.
It also pointed to the impact of the Nigeria Tax Act 2025 which took effect on January 1, 2026. Under the new law, states now get 55% of VAT revenue, up from 50%. The Federal Government’s share dropped from 15% to 10%.
Also, 30% of the states’ VAT pool will now be shared based on where goods and services were consumed, instead of where a company’s headquarters is located. This means a state’s allocation will now reflect more of its economic activity.
The communiqué said the July increase came from stronger performance in several revenue lines. Petroleum Profit Tax, Hydrocarbon Tax, Companies Income Tax, Capital Gains Tax, Stamp Duty, petroleum royalties, mineral royalties, excise duty and gas-flaring penalties all recorded big increases. FAAC said this points to better compliance and collection.
However, there were drops in VAT, Import Duty, CET Levies, Rental of Gas Flared Fee and Miscellaneous Oil Revenue. The committee said it will work with revenue agencies to close those gaps.
FAAC reaffirmed its commitment to full, transparent and timely remittance of all collectible revenue into the Federation Account. It also restated the need to diversify revenue away from oil through tax administration and non-oil revenue reforms.
The committee said it will continue to align its work with NACOFED to improve coordination between the federal and state governments on fiscal policy and revenue sharing. It will also keep monitoring solid minerals and other non-oil royalty streams as areas with potential for future growth.
FAAC concluded that sustaining the gains recorded in July will depend on continued discipline in revenue collection and remittance by all MDAs.
