Agency News
….Calls for sustainable use of higher revenues
Barbara Bako, Abuja.
The Federation Account Allocation Committee (FAAC) has approved ₦3.007 trillion in revenue allocation to the Federal Government, states and local government councils for July 2026.
The allocation was approved at the committee’s August meeting in Owerri, Imo State, where members also reviewed the country’s fiscal position and the recent improvement in government revenues.
FAAC reported that gross statutory revenue increased by 17.8 per cent to ₦4.359 trillion in July, compared with ₦3.700 trillion recorded in June.
The committee linked the increase to improved collections from several oil and non-oil revenue sources, including Petroleum Profit Tax, Companies Income Tax, petroleum royalties, mineral royalties, excise duty and Stamp Duty.
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Meanwhile, gross VAT revenue stood at ₦793.968 billion, representing a marginal 0.7 per cent decline from the ₦799.746 billion recorded in June.
FAAC urged states to convert the higher revenue inflows into long-term fiscal stability rather than relying on the increase as a temporary windfall.
The committee identified stronger internally generated revenue, better utilisation of government assets, investment promotion, human capital development and transparent financial reporting as priorities for states.
It also encouraged governments to implement payroll verification, maintain comprehensive public asset registers and publish audited accounts promptly.
FAAC further stressed the importance of diversifying government revenue beyond oil and improving the collection and remittance of revenues by government agencies to ensure more predictable allocations to all three tiers of government.
Abubakar Siddiq Ibn Usman
