THE Federation Account Allocation Committee (FAAC) has distributed a total of N2.3 trillion to the Federal Government, state governments and local government councils as revenue allocation for May 2026.
News Point Nigeria reports that the allocation was announced following the June 2026 meeting of FAAC held in Abuja, with the committee revealing that the distributable revenue was shared among the three tiers of government despite a significant decline in Value Added Tax (VAT) collections during the period.
According to the News Agency of Nigeria (NAN), the announcement was made on Wednesday by Bawa Mokwa, Director of Press and Public Relations at the Office of the Auditor-General of the Federation (OAGF).
The latest allocation represents an increase from the N2.25 trillion shared among the Federal Government, states and local governments in April 2026.
Mokwa disclosed that the N2.3 trillion distributable revenue comprised N1.611 trillion from statutory revenue and N688.785 billion from Value Added Tax (VAT) revenue.
According to the communiqué issued at the end of the meeting, the total gross revenue available in May stood at N3.39 trillion.
The committee stated that N123.54 billion was deducted as cost of collection, while N971.61 billion was recorded as transfers, interventions, refunds and savings.
FAAC further revealed that gross statutory revenue for May rose to N2.65 trillion, representing an increase of N273.62 billion when compared to the N2.37 trillion generated in April.
However, the communiqué noted that gross VAT revenue declined from N806.61 billion in April to N743.66 billion in May, representing a decrease of N62.94 billion.
A breakdown of the N2.3 trillion distributable revenue showed that the Federal Government received N818.68 billion, state governments received N759.14 billion, while local government councils got N534.27 billion.
“The local government council received N534.277 billion, while the sum of N188.132 billion (13 percent of mineral revenue) was shared to the benefiting states as derivation revenue,” the committee stated.
The communiqué further explained the distribution of the N1.611 trillion statutory revenue, indicating that the Federal Government received N749.801 billion, while state governments received N380.309 billion.
It added that local government councils received N293.202 billion from the statutory revenue component, while N188.132 billion, representing 13 per cent of mineral revenue, was shared to oil-producing states as derivation revenue.
From the N688.785 billion VAT revenue, the Federal Government received N68.87 billion, states received N378.83 billion, while local government councils got N241.07 billion.
Mokwa also disclosed that several major revenue sources recorded strong performances during the period under review.
According to him, collections from Companies Income Tax (CIT), Capital Gains Tax (CGT), Stamp Duties (SDT), Petroleum Profit Tax (PPT), Hydrocarbon Tax (HT), oil and gas royalties, as well as import duties, recorded significant increases in May.
The OAGF spokesperson, however, noted that collections from VAT, excise duties and Common External Tariff (CET) levies witnessed declines during the same period.
The latest FAAC figures underscore the mixed performance of government revenue streams, with rising statutory earnings helping to offset weaker VAT collections and sustain a higher overall allocation to the three tiers of government.