Nigeria’s three tiers of government shared a combined N15.997 trillion from the Federation Account between January and July, according to data released by the Federation Account Allocation Committee (FAAC). The figure, approximately N16 trillion, reflects the latest disbursement of N3.007 trillion for July — the highest monthly allocation recorded during the seven-month period.
FAAC approved the July allocation at its meeting in Owerri, Imo State, the Office of the Accountant-General of the Federation confirmed in a statement signed by spokesperson Bawa Mokwa. Monthly disbursements showed a steady upward trajectory: N1.96 trillion in January, N1.89 trillion in February, N2.04 trillion in March, N2.25 trillion in April, N2.30 trillion in May, and N2.55 trillion in June. The first half of the year accounted for N12.99 trillion before July’s distribution pushed the cumulative total to N15.997 trillion.
The July allocation represents a 17.9 percent increase over June, amounting to an additional N457 billion. Gross statutory revenue also surged, rising 17.8 percent to N4.359 trillion from N3.700 trillion the previous month — a gain of N658.087 billion. Value Added Tax (VAT) revenue, however, dipped marginally by 0.7 percent to N793.968 billion from N799.746 billion in June, a decline of N5.778 billion.
Average monthly FAAC disbursements over the period stood at roughly N2.285 trillion, with July marking the peak. Finance Minister Taiwo Oyedele noted that each tier of government — federal, state, and local — received at least N2 trillion monthly during the review period.
The sustained growth in statutory revenue underscores improved collections from oil and non-oil sources, even as VAT receipts showed slight volatility. Analysts say the rising allocation trend could ease fiscal pressures on subnational governments, many of which rely heavily on FAAC transfers to fund recurrent expenditure and service debt. The next FAAC meeting will be closely watched for signals on whether the upward momentum can be sustained amid global oil price fluctuations and domestic revenue reforms.
