The Federation Account Allocation Committee (FAAC) has shared a total of N2.3 trillion among the Federal Government, the 36 state governments, and the 774 local government councils from revenue generated in May 2026.
The latest distribution represents an increase of N43 billion compared to the N2.257 trillion shared from April 2026 revenue. This reflects a month-on-month growth of about 1.9 percent, continuing a steady rise in revenue allocations across the country.
Recent figures show that federation revenue has maintained an upward trend over the past few months. The amount shared from April revenue was higher than the N2.04 trillion distributed from March earnings, while March allocations also exceeded the N1.89 trillion shared from February revenue.
Details of the latest revenue distribution were disclosed after the June 2026 FAAC meeting held in Abuja. According to the committee, the N2.3 trillion distributable revenue consisted of N1.611 trillion in statutory revenue and N688.785 billion generated from Value Added Tax (VAT).
FAAC reported that the total gross revenue available in May stood at N3.395 trillion. However, before the final allocation was made, N123.546 billion was deducted as the cost of collection, while N971.610 billion was reserved for transfers, interventions, and refunds.
One of the major highlights of the report was the strong increase in statutory revenue collections. Gross statutory revenue rose from N2.378 trillion in April to N2.651 trillion in May, recording an increase of N273.623 billion.
In contrast, VAT collections experienced a decline during the same period. Gross VAT revenue dropped from N806.617 billion in April to N743.668 billion in May, representing a decrease of nearly N63 billion.
Despite the reduction in VAT earnings, stronger inflows from oil-related taxes and other government revenue sources helped offset the shortfall and pushed total distributable revenue higher.
According to FAAC, significant growth was recorded in Companies Income Tax (CIT), Capital Gains Tax (CGT), Stamp Duties, Petroleum Profit Tax (PPT), Hydrocarbon Tax, and Oil and Gas Royalties. However, revenues from Import Duties, VAT, Excise Duties, and CET Levies declined during the month.
A breakdown of the N2.3 trillion allocation shows that the Federal Government received N818.680 billion, while the state governments received N759.141 billion.
The 774 local government councils shared N534.277 billion, while the oil-producing states received N188.132 billionas their 13 percent derivation allocation.
From the statutory revenue component, the Federal Government received N749.801 billion, states got N380.309 billion, and local governments received N293.202 billion. Oil-producing states also benefited from the derivation fund attached to this revenue stream.
For VAT revenue, the Federal Government received N68.879 billion, states shared N378.832 billion, while local governments received N241.075 billion.
The latest FAAC allocation highlights the continued strength of Nigeria’s federation revenue despite mixed performance across key revenue sources. Increased earnings from taxes linked to businesses and the oil sector helped compensate for weaker VAT and import-related revenues, resulting in another month of revenue growth for all tiers of government.
