The Federation Account Allocation Committee (FAAC) has distributed N2.3 trillion from May 2026 revenue to the Federal Government, states, and local government councils.
This represents a N43 billion (1.9%) increase compared to the N2.26 trillion shared in April, continuing the positive trend in federation revenue allocations observed in recent months.
According to a statement issued by the Office of the Accountant-General of the Federation, the total distributable revenue comprised N1.611 trillion from statutory sources and N688.785 billion from Value Added Tax (VAT).
Allocation Breakdown
– Federal Government: N818.680 billion
– State Governments: N759.141 billion
– Local Government Councils: N534.277 billion
– 13% Derivation to Oil-Producing States: N188.132 billion
Gross revenue available for the month stood at N3.395 trillion. After deducting N123.546 billion as collection costs and setting aside N971.610 billion for transfers and refunds, the remaining amount was shared among the three tiers of government.
Statutory revenue recorded strong growth, rising to N2.651 trillion in May from N2.378 trillion in April. This increase was driven by higher collections from Companies Income Tax, Petroleum Profit Tax, Hydrocarbon Tax, and oil royalties. However, VAT revenue declined to N743.668 billion from N806.617 billion the previous month.
Resilience in Revenue Performance
The latest FAAC distribution highlights the resilience of federation revenues despite mixed performance across different streams. Stronger oil-related inflows helped offset the dip in VAT collections, resulting in a higher overall distributable amount.
The improved revenue sharing comes at a time when the government continues to implement reforms aimed at boosting non-oil revenue and enhancing collection efficiency. The steady rise in allocations provides additional fiscal resources for the three tiers of government to meet obligations, fund infrastructure projects, and support economic recovery efforts.
