The Federal Government, the 36 states of the federation and the 774 Local Government Councils have shared a total of N3.007 trillion as revenue allocation for July.
The allocation was approved by the Federation Account Allocation Committee (FAAC) during its monthly meeting held in Owerri, Imo State.
According to the Director of Press and Public Relations at the Office of the Accountant-General of the Federation (OAGF), Bawa Mokwa, the meeting was held alongside activities of the ongoing National Council of Federation and Economic Development (NACOFED).
Statutory Revenue Records Significant Increase
Mokwa said Nigeria’s gross statutory revenue increased significantly in July, rising to N4.359 trillion.
The figure represents an increase of N658.087 billion, or 17.8 per cent, compared with the N3.700 trillion recorded in June.
He explained that the improvement was driven by stronger earnings from several revenue sources.
These included Petroleum Profit Tax (PPT), Hydrocarbon Tax, Companies Income Tax (CIT), Capital Gains Tax, Stamp Duty Tax, petroleum royalties, mineral royalties, excise duty and gas-flaring penalties.
VAT Revenue Records Slight Decline
Despite the growth in statutory revenue, Value Added Tax (VAT) earnings recorded a slight decline.
FAAC data showed that gross VAT revenue stood at N793.968 billion in July.
This represents a marginal decrease of N5.778 billion, or 0.7 per cent, compared with the N799.746 billion recorded in June.
Mokwa said the increase from other revenue streams was partly reduced by lower earnings from VAT, import duty, CET levies, gas-flaring fees and some oil-related revenues.
FAAC Targets Better Revenue Collection
The committee said it would continue working with government revenue agencies to improve revenue collection and address weaknesses affecting remittances into the Federation Account.
Mokwa said FAAC remains committed to ensuring that all collectible revenues are properly accounted for and remitted transparently.
He added that planned reconciliation exercises would help strengthen accountability in government revenue management.
Government Pushes for Non-Oil Revenue Growth
FAAC also emphasised the importance of reducing dependence on oil revenue by expanding income from other sectors.
Mokwa said solid minerals and other non-oil revenue sources have significant potential to increase government earnings.
He noted that ongoing tax reforms and revenue mobilisation efforts were aimed at improving the stability and sustainability of allocations to the three tiers of government.
Coordination Needed for Economic Growth
The committee highlighted the importance of cooperation between the Federal Government and state governments in managing fiscal policies, revenue sharing and broader economic development plans.
FAAC said improved revenue performance would depend on continued discipline among Ministries, Departments and Agencies (MDAs) responsible for revenue generation and remittance.
The committee reaffirmed its commitment to supporting reforms that would make government allocations more predictable and sustainable.
