Photo Credit: The Sun Newspaper Nigeria / FAAC illustration
N60.75trn Shared But Hardship Persists: FG, States, LGs Under Pressure to Deliver

The Federal Government, 36 states and 774 Local Government Councils have shared an estimated N60.75 trillion from the Federation Account in 38 months, from June 2023 to July 2026.

The figures came as FAAC disbursed N3.007 trillion for July 2026 – the highest ever monthly distribution and the first time allocation crossed the N3 trillion mark. The amount was approved at the Federation Account Allocation Committee (FAAC) meeting held in August 2026 in Owerri, Imo State.

Data from FAAC shows that gross statutory revenue rose by 17.8% to N4.359 trillion in July from N3.700 trillion in June. VAT revenue dipped slightly by 0.7% to N793.96 billion.

From the July 2026 allocation:
• Federal Government: N1.146 trillion • 36 States: N943.35 billion • 774 Local Governments: N673.64 billion • 13% Derivation for oil-producing states: N243.47 billion
The revenue increase was driven by higher collections from Petroleum Profit Tax, Hydrocarbon Tax, Company Income Tax, Capital Gains Tax, Stamp Duty, petroleum and mineral royalties, and gas-flaring penalties.

A Steady Climb
Monthly allocations have grown sharply from N932.6 billion in June 2023 to over N3 trillion in July 2026. The amount crossed N1 trillion in late 2023, N1.7 trillion in late 2024, and crossed the N2 trillion threshold in July 2025 with N2.001 trillion shared.

In total, within the period:
• Local Governments received about N14.745 trillion • States received over N20 trillion • Federal Government received over N21 trillion • Derivation fund stood at about N4.473 trillion
More Money, Same Hardship?
Despite the record inflow, economists say Nigerians still face high inflation, food and transport costs, unemployment, and weak purchasing power.

FAAC at its Owerri meeting urged governments to convert the windfall into sustainable growth – improve IGR, build asset registers, verify payrolls, publish audited accounts, and diversify revenue beyond oil. It also noted the Nigeria Tax Act 2025, effective January 1, 2026, which raised states’ share of VAT from 50% to 55% while FG’s share dropped from 15% to 10%.

Reacting, experts described the revenue surge as nominal, not real:

Prof. Femi Saibu (UNILAG) said subsidy removal and naira devaluation boosted the naira value of oil and customs revenue, but also triggered higher fuel and living costs. He noted World Bank’s April 2026 report putting Nigeria’s poverty rate at 63% (140m people), with much of sub-national revenue going to salaries and overheads instead of capital projects.

Dr. Aliyu Ilias said sharing more money does not automatically improve welfare. He called on the Federal Government to give strategic direction on how states spend – with dedicated percentages for agriculture, social investment and job creation – instead of focusing on prestige projects like flyovers.

Prof. Akpan Ekpo (FERT) and Muda Yusuf (CPPE) both identified power failure and insecurity as major barriers. Yusuf stressed that expenditure quality matters more than size, urging states to prioritize rural roads, primary healthcare, education, mass transport, water, and support for small businesses, while scrutinizing spending on airports, airlines, and luxury vehicles.

MSME operators and other economists including Gbenga Wilfred and Chuka Ezeonu called for transparent publishing of FAAC receipts, single-window affordable loans, mandatory local sourcing for government procurement, investment in mechanised farming, cold storage, feeder roads, and harmonization of multiple taxes.

They agreed that without productive investment and stronger transparency, higher FAAC allocations will continue to coexist with poverty.
Source: The Sun Newspaper Nigeria –