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FAAC Distributes N3.007tn July Revenue as States Get Bigger VAT Share Under New Tax Regime

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By Gloria Ikibah

The Federation Account Allocation Committee (FAAC) has shared a total of N3.007 trillion generated in July 2026 among the Federal Government, the 36 state governments faacand the 774 local government councils, despite a decline in Value Added Tax (VAT) receipts.

The decision was reached at FAAC’s monthly meeting for August 2026, held in Owerri, Imo State, where members also reviewed the country’s fiscal outlook and discussed strategies to strengthen revenue generation and public financial management.

According to the committee, the Federal Government received N1.146 trillion from the July revenue, while the 36 states shared N943.352 billion.

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The 774 local government councils received N673.649 billion, while oil-producing states shared N243.478 billion as 13 per cent derivation revenue from mineral resources.
The latest figures showed a strong increase in statutory revenue.

Gross statutory revenue rose to N4.359 trillion in July, representing an increase of N658.087 billion, or 17.8 per cent, compared with the N3.700 trillion recorded in June.

However, VAT collections fell slightly during the period.
Gross VAT revenue stood at N793.968 billion in July, down by N5.778 billion, or 0.7 per cent, from the N799.746 billion generated in June.

FAAC attributed the growth in statutory revenue to stronger collections from key revenue sources, including Petroleum Profit Tax, Hydrocarbon Tax, Companies Income Tax, Capital Gains Tax, Stamp Duty Tax, petroleum royalties, mineral royalties, excise duty and gas flared penalties.

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The committee noted, however, that the gains were partly offset by declines in VAT, import duty, Common External Tariff levies, rental of gas flared fees and other oil-related revenue.

It pledged to continue working with revenue-generating agencies to improve collections and close existing gaps in remittances.

FAAC also reaffirmed its commitment to ensuring the “full, transparent and timely remittance of collectible revenue by all revenue-generating agencies into the Federation Account”, especially as preparations begin for the planned accounts reconciliation exercise.

The committee emphasised the need to reduce Nigeria’s dependence on oil revenue by expanding non-oil income sources.

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It identified solid minerals and other non-oil royalty streams as sectors with significant growth potential.

The meeting, which was held alongside the ongoing National Council of Federation and Economic Development (NACOFED), also focused on how the recent rise in government revenue could be translated into long-term fiscal stability across all three tiers of government.

As part of the discussions, Commissioners of Finance and Accountants-General participated in a special session on subnational fiscal sustainability.

The session examined ways to strengthen public finances and ensure that higher allocations lead to improved infrastructure, economic growth and better social services.

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FAAC noted that allocations from the Federation Account had increased significantly over the past three years, largely due to the removal of fuel subsidies, exchange-rate reforms and recent tax policies.

The committee also highlighted the impact of the Nigeria Tax Act 2025, which came into effect on January 1, 2026.

Under the new tax regime, the share of VAT allocated to states increased from 50 per cent to 55 per cent, while the Federal Government’s share declined from 15 per cent to 10 per cent.

In addition, 30 per cent of the states’ VAT allocation is now distributed based on where goods and services are consumed rather than where companies are officially registered.

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The committee said the new formula would create a stronger relationship between economic activities within states and the revenue they receive from the Federation Account.

FAAC urged both federal and state governments to focus on six critical indicators of fiscal strength, including revenue quality, asset strength, economic growth, investment attraction, human capital development and institutional transparency.

It advised governments to broaden their internally generated revenue beyond conventional tax sources, identify idle public assets and put them to productive use.

The committee also encouraged states to develop reliable Gross Domestic Product (GDP) data to improve economic planning and measurement.

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It further called on governments at all levels to create business-friendly environments capable of attracting local and foreign investment.

According to the committee, sustained investments in education and healthcare remain essential for long-term economic growth and development.

On public financial management, FAAC urged all levels of government to maintain transparent, timely and properly audited accounts.

It also called for the establishment of comprehensive asset registers, improved payroll verification systems and the prompt publication of audited financial statements within the next 12 months.

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The committee stressed that the sustainability of recent revenue gains would depend largely on greater discipline in revenue collection and remittances by Ministries, Departments and Agencies.

FAAC reiterated its support for ongoing reforms aimed at improving the transparency, predictability and growth of revenue allocations across the three tiers of government.

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Sad! Kano social media commentator Ibrahim Shagamu killed in his apartment

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A popular Kano social media political commentator, Ibrahim Khalil Dan Shagamu, has been reportedly killed in his apartment in Kano State.

Dan Shagamu, who operated under the brand Dan-shagamu International, was known for his social media videos and commentary on political, religious and community issues.

Amnesty International Nigeria confirmed his killing in a statement posted on X on Wednesday, saying his body was found in a pool of blood at his home.

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“Amnesty International strongly condemns the killing of a social media political commentator Ibrahim Khalil Dan Shagamu whose body was found today in a pool of blood at his home in Kano,” the organisation said.

“He was brutally slaughtered after being overpowered by his killers.”

Details surrounding the circumstances of the killing were still unclear as of Wednesday.Amnesty International called on the Nigerian authorities to investigate the killing and ensure that those responsible are brought to justice.

“The Nigerian authorities must investigate this incident and ensure that those suspected of responsibility are brought to justice,” it said, while tagging the Nigeria Police Force.

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The rights organisation also expressed concern over what it described as increasing politically related threats and intimidation ahead of the elections.

“As the elections approach, we continue to receive disturbing reports of politically related threats to life and intimidation,” Amnesty said.

News of Dan Shagamu’s death has sparked an outpouring of grief among his followers and residents, with many taking to social media to express shock and offer prayers for his soul.

Reports circulating on social media said Dan Shagamu was killed in a gruesome manner, with some describing the attack as “yankan rago”, a Hausa expression referring to throat-slitting.

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Akpabio Petitions DSS Over Viral ‘Anti-North’ Statement, Demands Probe

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Senate President Godswill Akpabio has petitioned the Department of State Services (DSS) to investigate a viral social media statement allegedly attributed to him in which he purportedly warned Northerners that they would “suffer the most” if President Bola Tinubu loses the 2027 election.

The statement, circulated on Facebook and other digital platforms alongside Akpabio’s photograph and official designation, has sparked controversy, prompting the Senate President to formally deny making the remark.

In a petition signed by his Chief of Staff, Chinedu Akubueze, Akpabio described the publication as “manifestly false, inflammatory and dangerously divisive,” urging the DSS to investigate its origin and distribution.

The viral graphic attributes the following statement to Akpabio: “Northerners, you will be the ones to suffer the most, if you allow Tinubu to lose the election.”

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Akpabio, however, said there is no credible evidence linking him to the statement.

According to the petition, no identifiable date, venue, speech, interview, audio or video recording, official statement or credible media report has been produced to authenticate the alleged quotation.

The Senate President alleged that the graphic was deliberately fabricated and presented as an authentic statement with the aim of misleading the public, inflaming regional sentiments and portraying him as hostile to Nigerians from the North.

Akpabio also drew the DSS’s attention to several individuals allegedly identified through a preliminary review of publicly accessible Facebook records as among the early amplifiers of the disputed material.

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The petition named Abdullai Musa, who allegedly shared the graphic in a Facebook group known as “Sheik Muhammad bin Uthman Group 24,” and Uzoma Chilaka, whose Facebook post allegedly reproduced the graphic alongside commentary attributed to Boniface Uzoma Chilaka and Engineer Ibrahim Umar Ammar.

It further referenced a verified Facebook account belonging to Ibrahim Umar Ammar, which allegedly later reproduced the graphic and substantially similar commentary.

Akpabio’s office, however, stressed that the individuals mentioned in the petition should not be presumed guilty, describing them only as “material persons of interest” whose activities could assist investigators in tracing the origin and circulation of the disputed publication.

The Senate President is asking the DSS to investigate the publication records, devices, communications and provenance of the graphic in accordance with Nigerian law.

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The petition comes amid heightened political activity ahead of the 2027 general elections and growing concerns over the spread of inflammatory, misleading and fabricated political content on social media.

The statement was issued by Jackson Udom, Special Assistant to the President of the Senate on Media.

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Kano moves to establish more military bases as bandit attacks escalate

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The Kano State Government has announced plans to establish additional military bases in security-prone parts of the state following growing concerns over the infiltration of armed bandits from neighbouring states.

Governor Abba Kabir Yusuf disclosed the development after meeting with the Minister of Defence, saying the Federal Government had agreed to strengthen military presence in vulnerable areas of the state.

The proposed military bases are expected to cover areas considered vulnerable to bandit attacks, including Shanono, Bichi, Gwarzo, Doguwa and Tudun Wada, among others.

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The move comes amid increasing security concerns in communities located close to Kano’s borders with neighbouring states, where residents have reportedly faced attacks by armed criminals, resulting in deaths, injuries and disruption of economic activities.

The Commissioner for Local Government and Chieftaincy Affairs, Alhaji Muhammad Taju Usman, disclosed the latest government resolutions after a September 5, 2026 meeting involving Governor Yusuf and the chairmen of the 44 local government councils.

Also at the meeting were the Speaker of the Kano State House of Assembly, the Commissioner for Local Government and Chieftaincy Affairs and the state Accountant-General.

Usman said security dominated the meeting, alongside discussions on infrastructure and human capital development.

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According to him, Governor Yusuf’s meeting with the Defence Minister produced an agreement on the need for additional military bases in local government areas identified as vulnerable to security threats.

He said the proposed bases would complement existing security structures involving the Nigeria Police Force, Neighbourhood Watch and Forest Guards.

The commissioner said the initiative was aimed at improving rapid response to attacks, strengthening security coverage, protecting communities and safeguarding lives and property.

N27.8bn ICT Centres for 44 LGAs

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Beyond security, the state government announced a series of development initiatives targeted at the 44 local government areas.

Usman said contracts had been awarded for the construction and provision of Computer-Based Test and Information and Communication Technology centres in all 44 LGAs.

The project, valued at N27.8 billion, is expected to improve students’ access to internet-enabled facilities for Joint Admissions and Matriculation Board examinations and other computer-based tests.

The commissioner said implementation would commence immediately.

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Rural Ambulances for Every Ward

The government also resolved to provide one rural ambulance to each ward across the state as part of efforts to improve access to emergency and basic healthcare services.

According to Usman, two drivers would be employed for each ambulance, with preference given to qualified residents of the affected wards.

Solar Streetlights, EV Charging Points

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The state government is also planning a pilot scheme for electric vehicle charging stations at strategic locations across the Kano metropolis.

Usman said the charging infrastructure would initially be introduced as a pilot project before possible expansion based on its performance.

He added that the installation of solar-powered streetlights across the 44 LGAs would begin immediately, following facilitation by Honourable Abba Bichi.

The project, he said, would improve public lighting, enhance security and support the state’s sustainable development efforts.

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More Grassroots Appointments

The government also approved the appointment of 50 special reporters for each local government area and 35 advisers for local government chairmen.

Usman said 15 of the adviser positions would be allocated to members of the former APC structure.

He said the appointments were designed to improve grassroots communication, public engagement and administrative effectiveness.

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