Nigeria’s three tiers of government received a major financial boost in July as the Federation Account Allocation Committee (FAAC) distributed a staggering N3.007 trillion in revenue, buoyed by a sharp rise in statutory earnings largely driven by oil-related taxes and royalties.

The huge allocation, approved during FAAC’s monthly meeting held in Owerri, Imo State, comes at a time when governments across the country are grappling with mounting development demands and fiscal pressures.

Announcing the outcome on Tuesday, the Office of the Accountant-General of the Federation (OAGF) said the revenue was shared among the Federal Government, the 36 states and the 774 local government councils.

According to the Director of Press and Public Relations at the OAGF, Bawa Mokwa, the meeting was held alongside activities of the National Council on Federation and Economic Development (NACOFED), where fiscal and economic issues affecting the federation were also discussed.

A breakdown of the figures revealed that statutory revenue witnessed a remarkable jump during the month under review. Gross statutory revenue climbed to N4.359 trillion, representing an increase of N658.087 billion compared to the N3.700 trillion recorded in June.

The impressive growth was fueled by stronger collections from several key revenue sources. These included Petroleum Profit Tax (PPT), Hydrocarbon Tax (HT), Companies Income Tax (CIT), Capital Gains Tax (CGT), Stamp Duties, petroleum and mineral royalties, excise duties, and gas-flaring penalties.

However, not all revenue streams recorded gains. Value Added Tax (VAT) collections slipped slightly, with gross VAT revenue dropping to N793.968 billion from N799.746 billion in June. The decline of N5.778 billion represented a marginal decrease of 0.7 per cent.

FAAC noted that while the surge in statutory revenue provided a significant boost to the federation’s earnings, some areas continued to underperform. Revenue from import duties, CET levies, gas-flaring rentals and other miscellaneous oil-related sources recorded declines during the period.

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Despite the mixed performance, the committee expressed optimism that ongoing reforms would strengthen revenue generation and improve remittance efficiency across government agencies.

Mokwa said FAAC remained committed to ensuring that all collectible revenues are fully and transparently paid into the Federation Account. He added that the committee would continue collaborating with revenue-generating agencies to close collection gaps and enforce stricter remittance compliance.

The committee also underscored the need to reduce the country’s dependence on crude oil earnings by expanding alternative sources of revenue. Particular attention, it said, should be given to the solid minerals sector and other non-oil royalty streams, which possess significant untapped potential.

FAAC further emphasized the importance of sustained collaboration between the Federal Government and state governments through NACOFED to align fiscal policies, strengthen revenue-sharing mechanisms and advance broader economic development goals.

While celebrating the July revenue increase, the committee warned that maintaining the momentum would depend on greater discipline by Ministries, Departments and Agencies (MDAs) in revenue collection and remittance practices.

It reaffirmed support for ongoing fiscal reforms aimed at making allocations to federal, state and local governments more predictable, sustainable and capable of supporting long-term economic growth.