FAAC Allocation Hits N3.007tn in July, States Gain Most From Subsidy Removal
By Aboki Forex —
The Federation Account Allocation Committee shared a record N3.007tn in July 2026, the first time monthly distributions crossed the N3tn mark. The amount was shared among the Federal Government, states and local governments, with state governments receiving a major boost to their monthly revenues.
Governors of the 36 states and the Federal Capital Territory have become the biggest winners of President Bola Tinubu's petrol subsidy removal. The policy has swelled state coffers and ushered in an era of multi-billion-naira monthly allocations.
Record Distribution
The July allocation followed N2.551tn distributed in June and N1.894tn in February. The steady increase reflects the impact of subsidy removal on federation revenues.
The latest figure marks a significant jump from earlier in the year and highlights the growing financial firepower available to sub-national governments.
What It Means for Nigerians
Despite the record allocations, many Nigerians are still waiting for relief in the form of improved infrastructure and social services. The headline from the original report says governors have listed projects, but citizens have yet to see tangible benefits from the rising revenues.
The challenge for state governments is to convert these unprecedented allocations into visible development that eases the hardship caused by subsidy removal.