The Federation Account Allocation Committee has shared a total of N2.3 trillion among the Federal Government, state governments and local government councils from revenues generated in May 2026.

The latest allocation represents an increase of N43 billion compared to the N2.257 trillion distributed from April revenues, reflecting continued growth in federally collected income.

Details of the distribution were disclosed in a statement issued after the June FAAC meeting in Abuja by the Director of Press and Public Relations in the Office of the Accountant-General of the Federation, Bawa Mokwa.

According to the statement, the distributable revenue consisted of N1.611 trillion from statutory revenue and N688.785 billion generated through Value Added Tax (VAT).

“A total of N2.300 trillion, representing revenue generated in May 2026, has been distributed among the Federal Government, state governments and local government councils,” the statement said.

The committee revealed that total gross revenue available in May stood at N3.395 trillion. From this amount, N123.546 billion was deducted as the cost of revenue collection, while N971.610 billion was earmarked for transfers, interventions and refunds.

FAAC noted that statutory revenue recorded significant growth during the month, rising from N2.378 trillion in April to N2.651 trillion in May, an increase of N273.623 billion.

However, VAT earnings declined during the same period. Gross VAT revenue fell by N62.949 billion, dropping from N806.617 billion in April to N743.668 billion in May.

Despite the reduction in VAT collections, stronger earnings from oil-related taxes and corporate taxes boosted overall revenue performance.

The communiqué issued after the meeting stated: “Collections from Companies Income Tax, Capital Gains Tax, Stamp Duties, Petroleum Profit Tax, Hydrocarbon Tax, and Oil and Gas Royalties improved considerably in May, while receipts from Import Duty, VAT, Excise Duty and CET Levies recorded declines.”

A breakdown of the allocation showed that the Federal Government received N818.680 billion, while the 36 states shared N759.141 billion.

The 774 local government councils received N534.277 billion, while oil-producing states got N188.132 billion as 13 per cent derivation revenue.

From the statutory revenue component, the Federal Government received N749.801 billion, states received N380.309 billion, and local governments got N293.202 billion. The derivation allocation to oil-producing states amounted to N188.132 billion.

For the VAT component, the Federal Government received N68.879 billion, states received N378.832 billion, while local government councils shared N241.075 billion.

The May allocation continues an upward trend in FAAC distributions recorded in recent months, driven largely by increased receipts from corporate taxes and petroleum-related revenues.

Economic analysts say the improved statutory revenue performance highlights the growing contribution of oil and tax revenues to government finances, helping to cushion the impact of weaker VAT and import-related collections.