The Federation Account Allocation Committee (FAAC) has distributed a total of N2.3 trillion to the Federal Government, state governments and local government councils from revenue generated in May 2026, reflecting a sustained rise in federation earnings.
The latest disbursement represents an increase of N43 billion compared to the N2.257 trillion shared from April revenue, underscoring continued growth in government income despite a decline in Value Added Tax (VAT) collections.
Details of the allocation were contained in a statement issued on Wednesday by the Director of Press and Public Relations in the Office of the Accountant-General of the Federation, Bawa Mokwa, after the June 2026 FAAC meeting held in Abuja.
According to the statement, the N2.3 trillion shared among the three tiers of government consisted of N1.611 trillion in statutory revenue and N688.785 billion generated from VAT.
FAAC disclosed that total gross revenue available in May stood at N3.395 trillion. However, N123.546 billion was deducted as collection costs, while N971.610 billion was earmarked for transfers, interventions and refunds before the balance was shared.
The committee reported a significant improvement in statutory revenue performance during the month. Gross statutory revenue increased to N2.651 trillion in May from N2.378 trillion recorded in April, representing a growth of N273.623 billion.
In contrast, VAT revenue declined, falling from N806.617 billion in April to N743.668 billion in May, a decrease of N62.949 billion.
Despite the drop in VAT receipts, stronger inflows from key tax and petroleum-related sources boosted overall earnings. FAAC noted that Companies Income Tax, Capital Gains Tax, Stamp Duties, Petroleum Profit Tax, Hydrocarbon Tax, as well as oil and gas royalties recorded substantial increases during the period.
However, revenues from import duties, VAT, excise duties and Common External Tariff levies witnessed notable declines.
A breakdown of the distributable revenue showed that the Federal Government received N818.680 billion, while the 36 states shared N759.141 billion. The 774 local government councils received N534.277 billion, while oil-producing states received N188.132 billion as 13 per cent derivation revenue.
From the statutory revenue component of N1.611 trillion, the Federal Government received N749.801 billion, states got N380.309 billion, and local governments received N293.202 billion. The oil-producing states also received N188.132 billion from the statutory revenue allocation as derivation.
For the VAT component, the Federal Government received N68.879 billion, state governments got N378.832 billion, while local government councils shared N241.075 billion.
The latest FAAC figures highlight the resilience of federation revenues, driven largely by improved collections from oil-related taxes and corporate earnings, even as consumption-based taxes such as VAT recorded weaker performance during the month.