The Federal Government, 36 state governments and 774 local government councils shared about N15.997 trillion from the Federation Account between January and July 2026, with July recording the highest monthly allocation so far this year.
The latest figures showed that the three tiers of government received N3.007 trillion for July, pushing the total amount distributed in the first seven months of the year to almost N16 trillion.
The Federation Account Allocation Committee (FAAC) approved the July allocation at its meeting held in Owerri, Imo State.
A statement issued on Tuesday by the spokesperson for the Office of the Accountant-General of the Federation, Bawa Mokwa, said the allocation was shared among the Federal Government, states and local government councils.
The July disbursement represents a significant rise from the N2.55 trillion shared in June.
Specifically, the N3.007 trillion allocation was N457 billion, or 17.9 per cent, higher than the June figure.
The increase came as the government recorded a strong rise in gross statutory revenue during the month.
According to the figures, gross statutory revenue rose to N4.359 trillion in July from N3.700 trillion in June.
This represents an increase of N658.087 billion, or 17.8 per cent, in one month.
However, the increase in statutory revenue was partly offset by a slight decline in revenue from Value Added Tax (VAT).
Gross VAT revenue fell to N793.968 billion in July from N799.746 billion in June.
The decline amounted to N5.778 billion, representing a 0.7 per cent drop.
The latest FAAC figures show that revenue distribution has remained above N1.8 trillion every month since the beginning of the year.
In January, the three tiers of government shared N1.96 trillion.
The figure dropped slightly to N1.89 trillion in February before rising to N2.04 trillion in March.
FAAC allocations increased further to N2.25 trillion in April and N2.30 trillion in May.
The amount distributed in June rose to N2.55 trillion before reaching a record N3.007 trillion in July.
The total amount shared during the first six months of the year was N12.99 trillion.
The addition of the July allocation brought the seven-month total to N15.997 trillion.
On average, the three tiers of government received about N2.285 trillion every month during the period.
The steady increase in monthly allocations is significant for the three tiers of government because Federation Account revenue remains a major source of funding for public administration and development projects across the country.
State and local governments depend heavily on their monthly allocations to meet financial obligations, including payment of salaries, pensions, infrastructure projects and the provision of basic services.
The Federal Government also relies on its share of the Federation Account to fund its programmes and meet other obligations.
The increase in allocations comes amid ongoing efforts by the Federal Government to improve revenue collection and strengthen the country’s public finances.
The government has introduced and pursued several reforms aimed at increasing non-oil revenue, improving tax administration and reducing leakages.
The performance of statutory revenue is also closely linked to the country’s broader revenue situation.
Statutory revenue includes proceeds from sources such as crude oil and other federally collected revenues that are distributed among the three tiers of government according to the applicable revenue-sharing formula.
VAT, on the other hand, is a consumption tax collected on goods and services. It is also shared among the Federal Government, states and local governments.
The slight fall in VAT revenue in July therefore contrasts with the strong increase recorded in statutory revenue during the month.
The latest figures also provide an indication of the revenue position of the three tiers of government as they prepare their spending plans for the rest of the year.
The increase in allocations could provide some relief to states and local governments facing rising costs and pressure to deliver public services.
However, higher monthly allocations do not necessarily translate into improved living conditions unless the funds are properly managed and directed towards productive projects.
Revenue sharing has remained an important issue in Nigeria, especially as states and local governments continue to seek greater financial independence.
The Federal Government has also been working on reforms to improve the country’s fiscal system and strengthen revenue generation.
Finance Minister and Coordinating Minister of the Economy, Taiwo Oyedele, had earlier said each tier of government received at least N2 trillion monthly during the period under review.
The latest FAAC figures appear to support the minister’s assessment, with monthly allocations rising above the N2 trillion mark from March through July.
July’s N3.007 trillion distribution was the highest monthly allocation recorded so far in 2026 and marked a notable rise from the levels seen earlier in the year.
The increase could strengthen the financial position of the three tiers of government, particularly if the trend continues in the coming months.
However, revenue performance remains subject to changes in oil earnings, tax collections and other sources of federally shared income.
For the states and local governments, the increased allocations could help them meet their immediate financial obligations and support ongoing projects.
At the federal level, improved revenue could also support the government’s spending plans and reduce pressure on borrowing.
With N15.997 trillion already distributed between January and July, attention will now turn to the performance of the Federation Account in the remaining months of 2026 and whether the upward trend in monthly allocations can be sustained.