Delta, Lagos and Rivers States emerged as the biggest beneficiaries of the ₦2.551 trillion shared by the Federation Account Allocation Committee (FAAC) for June 2026, underlining their strategic importance in Nigeria’s revenue-sharing formula.
The distribution, approved at the committee’s July meeting in Abuja, saw the Federal Government, the 36 states and the 774 local government councils receive allocations from statutory revenue and Value Added Tax (VAT). The total distributable amount comprised ₦1.81 trillion in statutory revenue and ₦740.72 billion from VAT.
Among the 36 states, Delta State received the highest allocation, followed closely by Lagos and Rivers, reflecting a combination of statutory allocations, VAT sharing and derivation benefits available to oil-producing states.
The large allocations to Delta and Rivers were boosted by the 13 per cent derivation fund, constitutionally allocated to oil-producing states, while Lagos continued to rank among the highest recipients because of its large population, economic activity and VAT contribution.
The June allocation represents a ₦250 billion increase from the ₦2.30 trillion shared for May 2026, continuing the upward trend in federation revenues this year. The increase was driven by stronger receipts from:
- Companies Income Tax (CIT)
- Petroleum royalties
- Value Added Tax (VAT)
- Import duties
- Common External Tariff (CET)
- Capital Gains Tax
- Stamp duties and other revenue sources.
According to the FAAC communiqué, the distributable revenue was shared among the three tiers of government as follows:
- Federal Government: ₦849.37 billion from statutory revenue, alongside its share of VAT and other allocations.
- State Governments: ₦430.81 billion from statutory revenue.
- 774 Local Government Councils: ₦332.14 billion.
- Oil-producing states: ₦197.61 billion as 13 per cent derivation.
FAAC disclosed that gross revenue available for June stood at ₦4.50 trillion, significantly higher than the previous month.
Out of the total amount:
- ₦160.74 billion was deducted as the cost of collection.
- ₦1.79 trillion was used for transfers, interventions and refunds before the balance was distributed among the beneficiaries.
The latest FAAC disbursement provides a major financial boost for state governments struggling with infrastructure deficits, salary obligations and capital projects.
For Delta, Lagos and Rivers, the sizeable allocations reinforce their dominant position in Nigeria’s fiscal landscape. However, analysts note that citizens will be watching closely to see whether the increased revenues translate into improved infrastructure, healthcare, education and other public services.
The June revenue distribution also highlights the Federal Government’s improving revenue profile, with stronger tax collections and petroleum receipts helping to sustain higher monthly allocations across all tiers of government
