The Federation Account Allocation Committee (FAAC) has distributed a whopping N2.300 trillion to the Federal Government, 36 state governments and the 774 local government councils as revenue allocation for May 2026.
The allocation was approved at the June 2026 FAAC meeting after members considered revenue inflows into the Federation Account for the month under review.
The N2.300 trillion shared comprised N1.611 trillion from Statutory Revenue and N688.785 billion from Value Added Tax (VAT).
A breakdown of the allocation showed that the Federal Government received N818.680 billion, while the 36 states got N759.141 billion.
The 774 Local Government Councils received N534.277 billion, while oil-producing states shared N188.132 billion as 13 per cent derivation revenue.
In a statement issued by the Head of Information and Public Relations Unit, Efe Ovuakporie, FAAC disclosed that gross statutory revenue for May 2026 rose significantly to N2.652 trillion, representing an increase of N273.623 billion compared to the N2.378 trillion recorded in April.
The committee attributed the improved revenue performance to higher collections from Companies Income Tax (CIT), Capital Gains Tax (CGT), Stamp Duties, Petroleum Profit Tax (PPT), Hydrocarbon Tax (HT) and Oil Royalties.
FAAC noted that the increase in receipts from petroleum-related taxes and corporate taxes helped strengthen the federation’s revenue profile during the period.
However, not all revenue sources recorded growth as collections from Import Duty, Value Added Tax (VAT), Excise Duty and Common External Tariff (CET) Levies declined compared to the previous month.
The committee disclosed that gross VAT revenue dropped to N743.668 billion in May from N806.617 billion recorded in April, reflecting a decline in consumption tax collections.
Despite the dip in VAT earnings, FAAC said stronger inflows from the oil sector and Companies Income Tax offset the shortfall and boosted total revenue available for distribution.
The committee added that the revenue sharing was carried out in line with existing laws and the approved revenue allocation formula.
The latest allocation is expected to provide much-needed financial relief for the three tiers of government as they continue to fund infrastructure projects, pay salaries and execute development programmes across the country.
