By Ahmed Yusuf, Abuja

The Federation Account Allocation Committee (FAAC) has shared a total of N2.300 trillion among the Federal Government, state governments and local government councils as revenue allocation for May 2026.

The allocation was announced following the June 2026 FAAC meeting held in Abuja. According to a statement issued by the Director of Press and Public Relations in the Office of the Auditor-General of the Federation, Mr. Bawa Mokwa, the distributable revenue comprised N1.611 trillion from statutory revenue and N688.785 billion from Value Added Tax (VAT).

FAAC disclosed that the total 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 N2.300 trillion for distribution among the three tiers of government.

A breakdown of the allocation shows that the Federal Government received N818.680 billion, state governments got N759.141 billion, while local government councils received N534.277 billion. In addition, oil-producing states shared N188.132 billion as 13 per cent derivation revenue from mineral resources.

The committee further revealed that gross statutory revenue increased to N2.651 trillion in May, representing an increase of N273.623 billion compared to the N2.378 trillion recorded in April. However, VAT collections declined to N743.668 billion from N806.617 billion in the previous month, reflecting a drop of N62.949 billion.

From the N1.611 trillion statutory revenue distributed, the Federal Government received N749.801 billion, states received N380.309 billion, while 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 shared, the Federal Government received N68.879 billion, state governments received N378.832 billion, and local government councils got 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, as well as import duties, recorded significant increases during the period. Conversely, collections from VAT, excise duties and Common External Tariff (CET) levies declined.

The latest allocation underscores the continued importance of federation revenues in financing government operations across the country amid ongoing efforts to strengthen revenue generation and fiscal sustainability.