The Federation Account Allocation Committee (FAAC) has distributed a total of N2.3 trillion to the Federal Government, state governments, and local government councils as revenue allocation for May 2026.
The details were disclosed in a statement issued in Abuja by Bawa Mokwa, Director of Press and Public Relations at the Office of the Accountant-General of the Federation, following the June 2026 FAAC meeting.
Breakdown of May 2026 Revenue Allocation
According to the statement, the N2.3 trillion distributable revenue comprised:
– N1.611 trillion in statutory revenue
– N688.785 billion in Value Added Tax (VAT) revenue
FAAC also reported that the total gross revenue available for May 2026 stood at N3.395 trillion.
From this amount, N123.546 billion was deducted as the cost of collection, while N971.610 billion was allocated to transfers and refunds before the final distribution.
Revenue Increased from Previous Month
The committee noted that gross statutory revenue for May rose to N2.651 trillion, representing an increase of N273.623 billion when compared to the N2.378 trillion recorded in April 2026.
However, VAT collections declined during the period.
Gross VAT revenue for May stood at N743.668 billion, which was N62.949 billion lower than the N806.617 billion generated in April.
How the N2.3 Trillion Was Shared
From the total distributable revenue of N2.3 trillion:
– The Federal Government received N818.680 billion
– State governments received N759.141 billion
– Local government councils received N534.277 billion
– Oil-producing states received N188.132 billion as 13 percent derivation revenue
Statutory Revenue Distribution
The N1.611 trillion statutory revenue was distributed as follows:
– Federal Government: N749.801 billion
– State Governments: N380.309 billion
– Local Government Councils: N293.202 billion
– Derivation Revenue to Benefiting States: N188.132 billion
VAT Revenue Allocation
The N688.785 billion distributable VAT revenue was shared among the three tiers of government based on the approved allocation formula.
The distribution included:
– Federal Government: N68.879 billion
– State Governments: N378.832 billion
– Local Government Councils: N241.075 billion
Growth in Key Revenue Sources
FAAC reported significant increases in several major revenue streams during May 2026.
The committee noted growth in:
– Companies Income Tax (CIT)
– Capital Gains Tax (CGT)
– Stamp Duties (SDT)
– Petroleum Profit Tax (PPT)
– Hydrocarbon Tax (HT)
– Oil and Gas Royalties
– Import Duties
However, revenues generated from Value Added Tax (VAT), Excise Duties, and Common External Tariff (CET) Levies recorded notable declines during the period.
Outlook
The latest FAAC distribution reflects continued growth in oil-related revenues and corporate taxes, providing increased allocations to all three tiers of government. Analysts say sustained improvements in revenue generation will be crucial for funding infrastructure projects, public services, and economic development initiatives across the country.