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.

The allocation was announced in a statement issued on Wednesday by the Director of Press and Public Relations in the Office of the Auditor-General of the Federation (OAGF), Mr. Bawa Mokwa, following the June 2026 FAAC meeting in Abuja.

The distributable revenue comprised N1.611 trillion from statutory revenue and N688.785 billion from Value Added Tax (VAT), reflecting the major revenue streams shared among the three tiers of government.

What the data is saying

FAAC disclosed that gross revenue available for the month stood at N3.395 trillion, from which deductions were made for collection costs and statutory transfers.

Other News

  • From this amount, N123.546 billion was deducted as the cost of collection, while N971.610 billion was allocated to transfers, interventions, and refunds. After these deductions, the total distributable revenue available for sharing among the benefiting tiers of government stood at N2.3 trillion.
  • Gross statutory revenue increased significantly during the month, rising to N2.651 trillion from N2.378 trillion recorded in April 2026, representing an increase of N273.623 billion.
  • However, gross VAT revenue declined to N743.668 billion in May from N806.617 billion in April, a drop of N62.949 billion.

The committee noted that the increase in statutory revenue helped offset the decline in VAT collections, supporting the higher overall distributable pool.

More insights

A breakdown of the allocation shows that all three tiers of government received substantial disbursements, while oil-producing states benefited from derivation revenue.

  • Of the total distributable revenue, the Federal Government received N818.680 billion, while the 36 state governments received N759.141 billion. The 774 local government councils were allocated N534.277 billion, and N188.132 billion was distributed to oil-producing states as derivation revenue.
  • A breakdown of the N1.611 trillion statutory revenue showed that the Federal Government received N749.801 billion, the state governments received N380.309 billion, and the local government councils received N293.202 billion. In addition, oil-producing states received N188.132 billion, representing the constitutionally mandated 13 per cent derivation revenue.
  • Similarly, from the N688.785 billion distributable Value Added Tax (VAT) revenue, the Federal Government received N68.879 billion, while the state governments were allocated N378.832 billion. The local government councils received N241.075 billion from the VAT pool.

Why this matters

The May revenue allocation reflects the continued importance of statutory oil and non-oil tax receipts in financing government operations across the federation.

  • FAAC noted that collections from Companies Income Tax (CIT), Capital Gains Tax (CGT), Stamp Duties (SDT), Petroleum Profit Tax (PPT), Hydrocarbon Tax (HT), Oil and Gas Royalty, and Import Duty recorded significant increases during the month.
  • However, revenue from VAT, Excise Duty, and CET Levies declined considerably, highlighting mixed performance across various tax and revenue sources.

The higher statutory revenue helped lift the distributable pool despite weaker VAT receipts, providing additional fiscal support to governments at a time of ongoing infrastructure and social spending needs.

What you should know

FAAC is the statutory body responsible for distributing federally collected revenue among the Federal Government, the 36 states, and the 774 local government councils.

  • The committee meets monthly to share revenues generated from oil, taxes, customs duties and other federally collected sources.
  • Revenue allocations are influenced by fluctuations in oil earnings, tax collections and statutory deductions.

The 13% derivation allocation is paid to oil-producing states as provided under the Constitution.