The Federation Account Allocation Committee (FAAC) has distributed a total of N2.300 trillion as May 2026 revenue to the Federal Government, 36 states and the 774 local government councils, reflecting improved earnings from key tax and oil-related revenue sources.
The allocation was approved during the June 2026 meeting of FAAC held in Abuja, according to a communiqué issued after the meeting.
The committee disclosed that the N2.300 trillion distributable revenue consisted of N1.611 trillion statutory revenue and N688.785 billion Value Added Tax (VAT) revenue.
A breakdown of the allocation showed that the Federal Government received N818.680 billion, while the state governments got N759.141 billion. The local government councils received N534.277 billion, while N188.132 billion was distributed to oil-producing states as 13 per cent derivation revenue.
FAAC also revealed that total gross revenue available in May stood at N3.395 trillion. From this amount, N123.546 billion was deducted as cost of collection, while N971.610 billion was set aside for transfers, interventions and refunds.
The committee noted a significant rise in statutory revenue during the month, with gross statutory earnings increasing to N2.651 trillion, up from N2.378 trillion recorded in April 2026. This represents an increase of N273.623 billion.
In contrast, VAT collections declined during the period. Gross VAT revenue fell to N743.668 billion in May from N806.617 billion in April, representing a decrease of N62.949 billion.
From the N1.611 trillion statutory revenue shared, the Federal Government received N749.801 billion, states received N380.309 billion, and local government councils got N293.202 billion, while the derivation allocation remained N188.132 billion.
Similarly, from the N688.785 billion VAT revenue, the Federal Government received N68.879 billion, states got N378.832 billion, and local government councils received N241.075 billion.
According to the communiqué, revenues from Companies Income Tax (CIT), Capital Gains Tax (CGT), Stamp Duties, Petroleum Profit Tax (PPT), Hydrocarbon Tax (HT), and Oil and Gas Royalties recorded significant increases in May.
However, earnings from Import Duty, Value Added Tax (VAT), Excise Duty and CET Levies declined considerably during the period under review.
The latest revenue distribution underscores the continued importance of oil receipts and corporate taxes in sustaining allocations to the three tiers of government amid fluctuating revenues from other sources
