Adedeji’s Tax Reforms Drive Record N2.26tn FAAC Payout, Experts Seek Accountability.

By The Ameh News
Nigeria’s ongoing tax administration reforms under the leadership of Zacch Adedeji, PhD, Chairman of the National Revenue Service (NRS), have recorded another significant milestone as the Federation Account Allocation Committee (FAAC) distributed a record N2.257 trillion to the Federal Government, 36 states, and 774 local government councils for April 2026.
The allocation, approved during the May 2026 FAAC meeting in Abuja, ranks among the largest monthly distributions in the nation’s history and underscores the growing contribution of tax revenues to government finances amid efforts to reduce dependence on crude oil earnings.
According to the FAAC communiqué, the distributable revenue comprised N1.260 trillion in statutory revenue, N747.088 billion from Value Added Tax (VAT), and N250 billion augmentation, bringing the total distributable revenue to N2.257 trillion.
The committee further disclosed that gross revenue available in April stood at N3.184 trillion, from which N113.756 billion was deducted as cost of collection while N813.839 billion was set aside for transfers, interventions, refunds, and savings.
The latest revenue performance reflects stronger tax collections, improved compliance mechanisms, and enhanced oil and gas royalty receipts.
Adedeji’s Revenue Drive Gains National Attention
The remarkable increase in tax receipts is being attributed to ongoing reforms spearheaded by Dr. Adedeji, whose administration has focused on expanding the tax net, leveraging technology, improving data integration among government agencies, and blocking revenue leakages.
Industry observers say the growing contribution of VAT and other non-oil taxes to the Federation Account demonstrates that Nigeria is gradually transitioning toward a more diversified and sustainable revenue model.
The NRS Chairman has repeatedly emphasized the need to build a modern tax system capable of supporting economic development while ensuring fairness, transparency, and voluntary compliance.
Experts React to Record Allocation
Responding to questions from The Ameh News, renowned economist Celestine Ukpong described the April 2026 FAAC distribution as a positive indication that Nigeria’s fiscal reforms are beginning to yield measurable results.
According to Ukpong, the record allocation shows that government efforts to improve domestic revenue generation are gaining traction.
“This is encouraging because it demonstrates that Nigeria is gradually strengthening its capacity to generate revenue internally rather than relying overwhelmingly on oil exports. The growth in VAT and other tax revenues suggests improved economic activity and better tax administration,” he said.
However, the economist cautioned that increasing revenue alone would not automatically translate into economic development.
“The critical issue now is how these resources are utilized. Citizens want to see improved infrastructure, better healthcare services, quality education, enhanced security, and job creation. Revenue growth must be matched by accountability, transparency, and efficient public spending.”
Ukpong further noted that sustaining the momentum would require continued support for businesses, expansion of the formal economy, and policies that encourage investment and productivity.
Accountants Seek Greater Fiscal Discipline
Also reacting to The Ameh News inquiry, financial expert and Chartered Accountant Peter Adebayo FCA said the record allocation provides a major opportunity for governments at all levels to improve service delivery and accelerate development projects.
According to Adebayo, the figures indicate that revenue reforms are beginning to strengthen the nation’s fiscal position.
“The significance of this allocation lies not only in the amount distributed but in the increasing role of tax revenues in national finances. This demonstrates that reforms aimed at broadening the tax base and improving compliance are producing positive outcomes,” he stated.

“We must move beyond celebrating large allocations. What matters ultimately is the impact on citizens. Governments should ensure these resources are invested in productive sectors capable of stimulating economic growth, creating jobs, and improving living standards.”
Adebayo also advocated stronger monitoring mechanisms to ensure that funds released through FAAC are properly utilized and accounted for.
Growing Non-Oil Revenue Offers Hope
For decades, Nigeria’s public finances have remained vulnerable to fluctuations in global crude oil prices. However, the growing contribution of VAT and other taxes is increasingly being viewed as evidence that the country’s fiscal structure is becoming more resilient.
Economic analysts believe that if current reforms are sustained, Nigeria could significantly reduce its exposure to oil price shocks while strengthening long-term fiscal stability.
The April 2026 revenue performance therefore represents not only a financial milestone but also a strategic shift in Nigeria’s economic management framework.
Looking Ahead
With tax collections reaching unprecedented levels and oil royalty earnings remaining relatively strong, experts say the challenge now is to sustain revenue growth while ensuring that public resources translate into tangible benefits for citizens.
As governments across the federation receive their shares of the historic N2.257 trillion allocation, attention is expected to shift toward how effectively the funds are deployed to address infrastructure deficits, social development needs, and economic growth objectives.
For many observers, the latest FAAC figures provide further evidence that Nigeria’s revenue reforms under Dr. Zacch Adedeji are beginning to reshape the country’s fiscal landscape and strengthen the financial capacity of governments nationwide.
Nigeria’s FAAC distributed a record N2.257 trillion for April 2026, driven by rising tax collections and oil royalties. Economist Celestine Ukpong and Peter Adebayo FCA tell The Ameh News that stronger accountability and prudent spending are now essential.