July allocation becomes the highest under President Tinubu as statutory revenue jumps 17.8%…
The Federation Account Allocation Committee (FAAC) has distributed a record ₦3.007 trillion among the Federal Government, states and local government areas for July, marking the highest monthly allocation since President Bola Tinubu assumed office.
The latest figure represents a significant increase from the ₦2.5 trillion shared in June and comes amid a sharp rise in statutory revenue collections.
FAAC disclosed the figures in a statement issued on Tuesday by Bawa Mokwa, Director of Public Affairs at the Office of the Accountant-General of the Federation.
The committee held its July meeting in Owerri, Imo State, on the sidelines of the ongoing National Council of Federation and Economic Development (NACOFED).
From the ₦3.007 trillion distributable revenue, the Federal Government received ₦1.14 trillion, while state governments received ₦943.35 billion.
The 774 local government areas shared ₦673.64 billion.
Beneficiary states also received an additional ₦243.47 billion as 13 percent derivation revenue.
The latest distribution comes as governments across the country contend with rising expenditure pressures and increased demands for infrastructure and social spending.
FAAC said gross statutory revenue climbed to ₦4.35 trillion in July, up from ₦3.7 trillion recorded in June.
The increase of ₦658.08 billion, representing a 17.8 percent rise, was driven by stronger collections across several major revenue streams.
According to the committee, higher receipts were recorded from Petroleum Profit Tax, Hydrocarbon Tax, Companies Income Tax, Capital Gains Tax, Stamp Duty Tax, petroleum royalties, mineral royalties, excise duty and gas-flaring penalties.
The gains were, however, partly cancelled out by weaker collections from VAT, import duties, Common External Tariff levies, gas-flaring rental fees and miscellaneous oil revenue.
Unlike statutory revenue, gross VAT collections recorded a slight decline.
VAT revenue fell from ₦799.74 billion in June to ₦793.96 billion in July.
FAAC warns against treating higher allocations as windfall
While welcoming the increase in revenue available for distribution, FAAC cautioned governments at all levels against treating the rising allocations as a temporary financial windfall.
The committee urged the Federal Government, states and local governments to use the additional resources to strengthen their fiscal positions and increase investment in areas that directly benefit citizens.
FAAC said the growth in allocations over the past three years has been influenced by major economic policy changes, including petrol subsidy removal, foreign exchange unification and tax reforms.
The committee stressed that the additional revenue should instead be converted into sustainable fiscal capacity.
“Rising allocations over the past three years, driven by subsidy removal, exchange-rate unification and tax reforms, should be converted into lasting fiscal strength rather than treated as a temporary windfall,” the statement said.
FAAC identified six areas it described as “vital signs” for improving the financial position of governments across the country.
They include improving the quality of revenue by expanding internally generated revenue, putting underutilised government assets to productive use and expanding economic activity.
The committee also highlighted the need to attract more investment, strengthen human capital development and improve public financial management.
FAAC further called on governments to institutionalise key reforms over the next 12 months.
Among the measures recommended are the establishment of comprehensive government asset registers, payroll verification systems and timely publication of audited financial statements.
The record July allocation comes at a time when the Federal Government and subnational governments are under pressure to translate increased revenue into visible improvements in infrastructure, public services and economic opportunities.
For the latest figures to have a lasting impact, FAAC said governments must focus not only on how much revenue they receive each month, but also on building systems that can generate stronger and more sustainable public finances in the years ahead.
