In its latest monthly dispersal of national wealth, the Federation Account Allocation Committee (FAAC) has distributed a total of N2.3 trillion to the three tiers of government—the Federal, State, and Local Government Councils—for the month of May 2026.
The distribution was officially announced on Wednesday in Abuja by Bawa Mokwa, the Director of Press and Public Relations in the Office of the Accountant-General of the Federation (OAGF), following the committee’s June 2026 meeting.
Here is a comprehensive breakdown of how the funds were generated, sliced, and shared.
The Big Picture: Where Did the Money Come From?
In May 2026, Nigeria generated a massive gross revenue of N3.395 trillion. However, not all of this was available for direct sharing.
Before the final N2.3 trillion was distributed, the following deductions and transfers were made:
- Cost of Collection: N123.546 billion (allocated to revenue-generating agencies).
- Transfers, Savings, and Refunds: N971.610 billion.
The remaining distributable revenue of N2.3 trillion was split into two primary buckets:
- Distributable Statutory Revenue: N1.611 trillion
- Distributable Value Added Tax (VAT) Revenue: N688.785 billion
Who Got What? (The Final Allocations)
From the net N2.3 trillion pool, here is how the funds were distributed across the federal, state, and local governments, including derivation funds for oil-producing states:
| Beneficiary | Amount Received |
|---|---|
| Federal Government (FG) | N818.680 billion |
| State Governments | N759.141 billion |
| Local Government Councils (LGCs) | N534.277 billion |
| Derivation Revenue (13% of mineral revenue for oil-producing states) | N188.132 billion |
Deep Dive: Statutory Revenue vs. VAT
1. Distributable Statutory Revenue (N1.611 Trillion)
This portion represents the core revenue from resources, customs tariffs, and corporate taxes.
- Federal Government: N749.801 billion
- State Governments: N380.309 billion
- Local Government Councils: N293.202 billion
- Derivation Revenue (13%): N188.132 billion
2. VAT Performance
Value Added Tax (VAT) continues to be a major driver of internal revenue, though it saw a slight dip this month.
- May 2026 Gross VAT: N743.668 billion
- Comparison: This is a decrease of N62.949 billion compared to the N806.617 billion recorded in April 2026.
Conversely, the overall Gross Statutory Revenue for May stood at N2.651 trillion, which is a healthy increase of N273.623 billion over April’s N2.378 trillion.
Frequently Asked Questions (FAQs)
What is FAAC and what does it do?
The Federation Account Allocation Committee (FAAC) is a Nigerian government body responsible for sharing federally collected revenues (such as taxes, customs duties, and oil sales) among the federal, state, and local governments every month.
Why is the shared N2.3 trillion less than the gross revenue of N3.395 trillion?
Before the revenue is shared, deductions are made for the Cost of Collection (which goes to tax and revenue bodies like the FIRS and Customs to cover their operating costs) and transfers, savings, or refunds (which help stabilize the economy or settle outstanding federal financial obligations). In May 2026, these deductions totaled over N1.09 trillion.
What is “Derivation Revenue”?
Derivation revenue is a special constitutional provision that allocates 13% of federally collected mineral revenues (primarily crude oil) directly back to the states where those resources were extracted. For May 2026, N188.132 billion was shared among these oil-producing states.
Did Nigeria’s revenue go up or down compared to last month?
It was a mixed performance. The Gross Statutory Revenue saw a strong increase of N273.623 billion compared to April. However, Value Added Tax (VAT) collections slowed down, dropping by N62.949 billion compared to the previous month.
What This Means for Citizens
With N2.3 trillion entering public coffers this June, citizens will be watching closely to see how state governors and local government chairmen utilize these allocations for infrastructure, civil servant salaries, and social welfare programs.
What are your thoughts on this month’s revenue sharing? Do you think your state government is putting its share to good use? Let us know in the comments below!
