FG, States, LGs Share N2.3 Trillion May Revenue as FAAC Allocation Rises

The Federation Account Allocation Committee (FAAC) has distributed a total of N2.300 trillion to the Federal Government, 36 states and the 774 local government councils as revenue allocation for May 2026.

The disbursement, approved at the June 2026 FAAC meeting held in Abuja, reflects an increase in federally collected revenue, driven largely by higher receipts from Companies Income Tax (CIT), Petroleum Profit Tax (PPT), Hydrocarbon Tax, and oil and gas royalties.

A statement issued by the Director of Press and Public Relations in the Office of the Auditor-General of the Federation (OAGF), Bawa Mokwa, said the total distributable revenue comprised N1.611 trillion in statutory revenue and N688.785 billion from Value Added Tax (VAT).

According to the communiqué issued after the meeting, total gross revenue available in May stood at N3.395 trillion. However, deductions for collection costs amounted to N123.546 billion, while transfers, interventions and refunds accounted for N971.610 billion.

The committee disclosed that gross statutory revenue for May rose to N2.651 trillion, representing an increase of N273.623 billion compared to the N2.378 trillion recorded in April 2026.

In contrast, VAT revenue declined during the period. Gross VAT collections fell from N806.617 billion in April to N743.668 billion in May, a decrease of N62.949 billion.

A breakdown of the N2.300 trillion distributable revenue shows that the Federal Government received N818.680 billion, while state governments 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.

Further details indicated that from the N1.611 trillion statutory revenue, the Federal Government received N749.801 billion, states received N380.309 billion, and local governments got N293.202 billion. The derivation allocation of N188.132 billion was also distributed to eligible states.

Similarly, from the N688.785 billion VAT revenue, the Federal Government received N68.879 billion, state governments got N378.832 billion, while local governments received N241.075 billion.

FAAC noted that revenues from Companies Income Tax (CIT), Capital Gains Tax (CGT), Stamp Duties, Petroleum Profit Tax (PPT), Hydrocarbon Tax (HT), Oil and Gas Royalties, and Import Duties recorded significant increases during the month under review.

However, collections from Value Added Tax (VAT), Excise Duties and Common External Tariff (CET) Levies witnessed noticeable declines.

The latest allocation comes as governments at all levels continue to rely heavily on federation revenue to finance infrastructure projects, public services and recurrent expenditures amid ongoing economic reforms.