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FAAC: Three Tiers of Government Share ₦2.550 Trillion as June 2026 Revenue; States and LGAs Receive Over ₦1.36 Trillion

  FAAC: Three Tiers of Government Share ₦2.550 Trillion as June 2026 Revenue; States and LGAs Receive Over ₦1.36 Trillion The Federation Account Allocation Committee (FAAC) has distributed a total of ₦2.551 trillion as Federation Account revenue for June 2026 to the Federal Government, the 36 state governments, and the 774 Local Government Councils across Nigeria. The allocation was approved during the FAAC meeting held in July 2026 in Abuja and chaired by the Honourable Minister of Finance and Coordinating Minister of the Economy. The meeting was attended by the Accountant-General of the Federation, State Commissioners of Finance, and other members of the committee. ( FMINFO ) Breakdown of the Revenue Distribution The total distributable revenue of ₦2.551 trillion comprised: ₦1.810 trillion from Statutory Revenue. ₦740.724 billion from Value Added Tax (VAT). ( FMINFO ) Statutory Revenue Allocation From the statutory revenue: Federal Government: ₦849.366 billion State Govern...

Report on the Senate Committee Regarding the Creation of Local Governments and States in Nigeria



The creation of new local governments and states in Nigeria has been a recurrent issue in the political landscape. The Senate Committee on the Review of the 1999 Constitution has been tasked with evaluating proposals for the creation of new local government areas (LGAs) and states, aiming to address administrative inefficiencies and ensure equitable distribution of resources.

Background

Nigeria, with its 36 states and 774 local government areas, operates a federal system that seeks to balance power and resources across its diverse regions. Over the years, demands for the creation of additional states and LGAs have been driven by ethnic, economic, and administrative considerations. Proponents argue that new states and LGAs would bring governance closer to the people, improve resource management, and foster regional development.

Senate Committee's Role

The Senate Committee on the Review of the 1999 Constitution plays a critical role in this process. The committee is responsible for:
1. Evaluating Proposals: Reviewing submissions from various regions requesting the creation of new states and LGAs.
2. Public Hearings: Conducting public hearings to gather opinions from stakeholders, including traditional rulers, community leaders, and the general public.
3. Assessment of Feasibility: Analyzing the economic viability, population size, and administrative logistics of proposed new states and LGAs.
4. Legislative Recommendations: Making recommendations to the Senate for amendments to the constitution to accommodate new states and LGAs.

Proposed New States

As of the latest reports, several regions have put forward proposals for the creation of new states. These proposals aim to address perceived marginalization, improve governance, and enhance regional development. Below is a list of proposed new states that have gained significant attention:

1. Adada State: Proposed to be carved out of Enugu State, aimed at addressing the developmental needs of the Nsukka cultural zone.
2. Ijebu State: Proposed from Ogun State, to cater to the specific needs of the Ijebu people.
3. New Delta State: A section of Delta State proposed for division to address developmental imbalances.
4. Okun State: Proposed to be created from the western part of Kogi State, to serve the Okun ethnic group.
5. Ogoja State: Suggested to be carved out of the northern part of Cross River State.
6. Savannah State: Proposed from the northeastern part of Borno State.
7. Gurara State: Suggested from parts of Kaduna State.
8. Kataf State: Proposed from the southern part of Kaduna State, addressing the concerns of the Kataf people.

Challenges and Considerations

The process of creating new states and LGAs is fraught with challenges:
1. Economic Viability: Ensuring that the new states and LGAs can sustain themselves economically without over-reliance on federal allocations.
2. Political Will: Gaining consensus among political leaders and stakeholders across the existing states.
3. Ethnic and Cultural Balance: Addressing the diverse ethnic and cultural landscape to avoid further fragmentation and potential conflicts.
4. Constitutional Amendments Navigating the complex process of amending the constitution, which requires approval from a significant majority of the National Assembly and state legislatures.

Conclusion

The creation of new local governments and states in Nigeria remains a contentious but critical issue. The Senate Committee on the Review of the 1999 Constitution is at the forefront of this process, balancing the diverse interests and demands of Nigeria's regions. While the proposed new states promise to enhance governance and development, careful consideration and strategic planning are essential to ensure their successful implementation and sustainability.

Recommendations

1. Comprehensive Feasibility Studies Conduct detailed economic and administrative studies to assess the viability of proposed states.
2. Inclusive Public Consultations Ensure that all stakeholders, including minority groups, are adequately consulted.
3. Gradual Implementation Consider phased creation of new states and LGAs to manage economic and administrative impacts.
4. Strengthening Existing Structures Prioritize the strengthening of existing states and LGAs to ensure they can support the creation of new entities.

By addressing these considerations, Nigeria can move towards a more equitable and efficient federal structure, enhancing governance and development across the nation.

This report provides an overview of the ongoing discussions and proposals regarding the creation of new local governments and states in Nigeria, reflecting the complex interplay of political, economic, and social factors involved.

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