FAAC Disburses N2.3tn Revenue to FG, States, LGAs in May
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 N43 billion increase from the N2.257 trillion shared in the previous month.
The latest allocation represents a 1.9 per cent month-on-month increase and extends the steady upward trajectory in federation revenue. The April 2026 allocation of N2.257 trillion had surpassed the N2.04 trillion distributed from March revenue by N217 billion, while the March allocation exceeded February’s N1.89 trillion by N150 billion.
The figures were disclosed 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, following the June 2026 meeting of FAAC held in Abuja.
According to the statement, the N2.3 trillion shared among the three tiers of government comprised N1.611 trillion in statutory revenue and N688.785 billion in Value Added Tax (VAT) revenue.
A communiqué issued after the meeting revealed that total gross revenue available in May stood at N3.395 trillion. From this amount, N123.546 billion was deducted as the cost of revenue collection, while N971.610 billion was earmarked for transfers, interventions and refunds.
The committee reported a significant improvement in statutory revenue collections during the month. Gross statutory revenue increased from N2.378 trillion in April to N2.651 trillion in May, representing a rise of N273.623 billion.
In contrast, VAT collections declined during the period. Gross VAT revenue dropped to N743.668 billion in May from N806.617 billion recorded in April, reflecting a decrease of N62.949 billion. Despite the decline in VAT receipts, stronger inflows from oil-related taxes and other revenue sources boosted overall distributable revenue.
FAAC noted that revenues from Companies Income Tax (CIT), Capital Gains Tax (CGT), Stamp Duties, Petroleum Profit Tax (PPT), Hydrocarbon Tax, and Oil and Gas Royalties recorded significant increases in May. However, receipts from Import Duty, Value Added Tax, Excise Duty and Common External Tariff (CET) levies declined considerably during the month.
A breakdown of the N2.3 trillion allocation shows that the Federal Government received N818.680 billion, while state governments were allocated 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.
From the N1.611 trillion statutory revenue component, the Federal Government received N749.801 billion, states received N380.309 billion, and local governments got N293.202 billion. Oil-producing states also received N188.132 billion from the statutory revenue as derivation funds.
The distributable VAT revenue of N688.785 billion was shared with the Federal Government receiving N68.879 billion, state governments receiving N378.832 billion, and local government councils receiving N241.075 billion.
The latest FAAC allocation underscores the resilience of federation revenues despite mixed performances across key revenue streams. While VAT, import duties and excise duties recorded declines, stronger collections from corporate taxes, petroleum-related taxes and oil and gas royalties helped drive statutory revenue to a new high and sustain the upward trend in distributable earnings.
By TimesNG