The Federation Account Allocation Committee (FAAC) has shared a total of N2.3tn among the Federal Government, states and local government councils from May 2026 revenue, marking an increase of N43bn compared to the N2.26tn distributed in the previous month.
The latest disbursement reflects a 1.9 per cent month-on-month increase and continues a steady upward trend in federation revenues over recent months.
According to figures released in a statement by the Director of Press and Public Relations in the Office of the Accountant-General of the Federation, Bawa Mokwa, the allocation was approved at the June 2026 FAAC meeting held in Abuja.
“A total sum of N2.300tn, being May 2026 Federation Account Revenue, has been shared to the Federal Government, states and the local government councils,” the statement said.
The breakdown shows that the distributable revenue comprised N1.611tn in statutory revenue and N688.785bn from Value Added Tax (VAT).
The communiqué indicated that total gross revenue available in May stood at N3.395tn. From this amount, N123.546bn was deducted as cost of collection, while N971.610bn was set aside for transfers, interventions and refunds.
Statutory revenue recorded strong growth during the month, rising to N2.651tn in May from N2.378tn in April, representing an increase of N273.623bn.
However, VAT revenue declined to N743.668bn from N806.617bn recorded in April, reflecting a drop of N62.949bn.
Despite the decline in VAT collections, gains in oil-related and other tax revenues helped sustain overall growth in distributable income.
The communiqué stated that Companies Income Tax, Capital Gains Tax, Stamp Duty, Petroleum Profit Tax, Hydrocarbon Tax, and oil and gas royalties all recorded significant increases, while Import Duty, VAT, Excise Duty and CET levies declined.
A breakdown of the N2.300tn shared showed that the Federal Government received N818.680bn, states received N759.141bn, and local government councils received N534.277bn.
In addition, oil-producing states received N188.132bn as 13 per cent derivation revenue.
From the N1.611tn statutory revenue, the Federal Government received N749.801bn, states got N380.309bn, while local governments received N293.202bn, with oil-producing states also receiving their derivation share.
For VAT revenue, the Federal Government received N68.879bn, states received N378.832bn, and local government councils received N241.075bn.
The latest FAAC distribution underscores continued resilience in federation revenues, driven largely by stronger performance in oil-linked tax streams.
While non-oil revenue categories such as VAT, import duties and excise duties recorded declines, increased inflows from petroleum profit tax, hydrocarbon tax, companies income tax and oil royalties provided a significant boost to overall collections.
The steady rise in monthly allocations over the past quarter reflects improving revenue mobilisation efforts and stronger oil sector receipts, even as fiscal pressures persist across government tiers.
Analysts note that sustained revenue growth will depend on stability in oil production, improvements in non-oil tax administration and continued economic recovery across key sectors of the economy.
