FAAC Shares ₦2.3 Trillion to Federal, State and Local Governments for May 2026

The Federation Account Allocation Committee (FAAC) has distributed a total of ₦2.3 trillion to the Federal Government, state governments and local government councils as revenue allocation for May 2026.

The allocation was confirmed during the June 2026 meeting of the committee and reflects improved revenue performance driven largely by stronger collections from key taxes and petroleum-related sources.

According to details released after the meeting, the distributable revenue consisted of ₦1.611 trillion from statutory revenue and ₦688.785 billion generated through Value Added Tax (VAT).

How the Revenue Was Shared

Of the total amount distributed, the Federal Government received ₦818.680 billion, while the 36 states shared ₦759.141 billion.

Local Government Councils received ₦534.277 billion, while oil-producing states were allocated an additional ₦188.132 billion as 13 per cent derivation revenue.

The allocation represents one of the major monthly revenue distributions used to fund government operations, infrastructure projects and public services across the country.

Statutory Revenue Records Increase

FAAC reported that gross statutory revenue for May rose to ₦2.652 trillion, representing an increase of ₦273.623 billion compared to the figure recorded in April.

The committee attributed the improvement to higher collections from Companies Income Tax (CIT), Capital Gains Tax, Stamp Duties, Petroleum Profit Tax, Hydrocarbon Tax and oil royalties.

The development signals continued gains in government revenue despite economic challenges affecting several sectors.

VAT Revenue Declines

Despite the overall increase in distributable revenue, gross VAT collections fell to ₦743.668 billion in May, down from ₦806.617 billion recorded in April.

However, FAAC noted that stronger earnings from petroleum-related taxes and corporate taxes helped offset the decline and sustain overall revenue growth.

Why This Matters

Monthly FAAC allocations remain the primary source of funding for many state and local governments across Nigeria.

An increase in revenue allocation can improve the ability of governments to finance infrastructure projects, pay salaries, execute social programmes and meet other financial obligations.

Economic analysts say sustained growth in non-oil tax revenue could also strengthen fiscal stability and reduce dependence on crude oil earnings.

What to Watch

Attention will now shift to how federal, state and local authorities utilise the funds, especially as citizens continue to demand improved infrastructure, security, healthcare and education services.

Analysts will also monitor whether revenue growth can be sustained in the coming months amid fluctuations in global oil prices and domestic economic conditions.