The Federation Account Allocation Committee (FAAC) has distributed N2.3 trillion as May 2026 revenue allocation to the Federal, state, and local government councils.
This was supported by a sharp rise in statutory revenue despite a decline in value-added tax (VAT) collections.
The allocation was announced after the June 2026 FAAC meeting in Abuja, according to a statement issued on Wednesday by Bawa Mokwa, director of press and public relations in the Office of the Auditor-General of the Federation.
FAAC said the distributable revenue consisted of N1.611 trillion from statutory revenue and N688.785 billion from VAT.
The committee disclosed that gross revenue available in May stood at N3.395 trillion.
From this amount, N123.546 billion was deducted as the cost of collection, while N971.610 billion was set aside for transfers, interventions and refunds, leaving N2.3 trillion for distribution among the three tiers of government.
READ ALSO:
- Tinubu’s Executive Order to NNPC Will Block Revenue Leakages, Increase FAAC Disbursements – Experts
- Manufacturing, Telecoms Drive Surge in Nigeria’s ₦2.28trn Q3 VAT
- IMF Report: FG Rules Out New Fuel, Telecom Taxes
- NNPC Boosts Crude Supply to Dangote Refinery Amid Global Energy Crisis
Gross statutory revenue rose to N2.651 trillion in May from N2.378 trillion in April, an increase of N273.623 billion.
In contrast, gross VAT revenue fell to N743.668 billion from N806.617 billion in April, representing a decline of N62.949 billion.
FAAC said the increase in statutory revenue offset the drop in VAT receipts and helped sustain the higher distributable revenue pool.
Of the N2.3 trillion shared, the Federal government received N818.680 billion, states received N759.141 billion, while local government councils got N534.277 billion.
Oil-producing states received N188.132 billion as 13 per cent derivation revenue.
A breakdown of the N1.611 trillion statutory revenue allocation showed that the Federal government received N749.801 billion, states got N380.309 billion, and local governments received N293.202 billion. Oil-producing states received N188.132 billion from derivation revenue.
From the N688.785 billion distributable VAT revenue, the Federal government received N68.879 billion, states got N378.832 billion, while local governments received N241.075 billion.
FAAC noted that collections from Companies Income Tax, Capital Gains Tax, Stamp Duties, Petroleum Profit Tax, Hydrocarbon Tax, oil and gas royalties, and import duties recorded significant increases during the month.
However, collections from VAT, excise duty and CET levies declined, reflecting mixed performance across the country’s major revenue sources.
The committee said the stronger statutory revenue performance provided additional support for government finances despite weaker VAT collections.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X