Nigeria recorded significant increases in revenue from key tax and petroleum-related sources in April 2026, according to the Federation Account Allocation Committee (FAAC), reflecting improved government earnings and contributing to a higher allocation to the three tiers of government.

FAAC disclosed that revenues from Companies Income Tax (CIT), Capital Gains Tax (CGT), Stamp Duties, Import Duties, Oil and Gas Royalties, and Value Added Tax (VAT) posted notable increases during the period under review. The improved collections helped boost the total distributable revenue shared among the Federal Government, state governments and local government councils.

The committee approved the distribution of ₦2.257 trillion from the April 2026 Federation Account revenue. The amount comprised ₦1.260 trillion in statutory revenue, ₦747.088 billion from VAT and ₦250 billion in augmentation funds.

According to the FAAC communiqué, total gross revenue available in April stood at ₦3.184 trillion. From this amount, ₦113.756 billion was deducted as the cost of collection, while ₦813.839 billion was earmarked for transfers, refunds and savings before the balance was distributed.

The increase in CIT and CGT collections is seen as a positive indicator of growing economic activity and improved tax administration. Similarly, stronger oil and gas royalty receipts contributed to the rise in statutory revenue, providing additional fiscal support to government finances.

However, FAAC noted that not all revenue streams performed strongly. Receipts from Petroleum Profit Tax (PPT) and Hydrocarbon Tax (HT) declined considerably during the period, highlighting persistent challenges in parts of the oil and gas sector despite broader improvements in revenue generation.

The latest revenue performance comes amid ongoing efforts by the Federal Government to strengthen fiscal sustainability through tax reforms and improved remittances from the petroleum sector. Earlier this year, President Bola Tinubu directed that all oil and gas revenues due to the government be paid directly into the Federation Account as part of broader measures to enhance public revenue management.

Analysts say the improved revenue profile could provide additional resources for infrastructure development, social services and other government programmes, even as authorities continue to address revenue shortfalls in certain segments of the oil industry.