By Seun Ibiyemi
The Federation Account Allocation Committee (FAAC) has shared a total of N2.3 trillion among the Federal Government, state governments and local government councils as revenue allocation for May 2026.
The disclosure was made by Bawa Mokwa, Director of Press and Public Relations in the Office of the Auditor-General of the Federation, in a statement issued on Wednesday in Abuja following the June 2026 FAAC meeting.
According to Mokwa, the N2.3 trillion distributable revenue comprised N1.611 trillion from statutory revenue and N688.785 billion from Value Added Tax (VAT).
He explained that a total gross revenue of N3.395 trillion was available during the month under review, while N123.546 billion was deducted as cost of collection and N971.610 billion was allocated for transfers and refunds.
Mokwa stated that gross statutory revenue for May 2026 stood at N2.651 trillion, representing an increase of N273.623 billion from the N2.378 trillion recorded in April 2026.
He, however, noted that gross VAT revenue declined to N743.668 billion in May from N806.617 billion in April, reflecting a decrease of N62.949 billion.
A breakdown of the allocation showed that the Federal Government received N818.680 billion from the total distributable revenue, while state governments received N759.141 billion.
Local government councils received N534.277 billion, while oil-producing states shared N188.132 billion as 13 per cent derivation revenue from mineral resources.
Further details showed that from the N1.611 trillion statutory revenue, the Federal Government received N749.801 billion, states got N380.309 billion, and local governments received N293.202 billion.
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The benefiting states also received N188.132 billion as derivation revenue.
From the N688.785 billion VAT revenue, the Federal Government received N68.879 billion, state governments received N378.832 billion, while local government councils got N241.075 billion.
Mokwa noted that collections from Companies Income Tax (CIT), Capital Gains Tax (CGT), Stamp Duties (SDT), Petroleum Profit Tax (PPT), Hydrocarbon Tax (HT), Oil and Gas Royalties, as well as Import Duties, recorded significant increases during the period.
He added, however, that revenues from VAT, Excise Duties and CET Levies witnessed considerable declines.
The latest FAAC distribution reflects continued growth in key tax and petroleum-related revenues, despite a slowdown in VAT collections, providing critical funding for the three tiers of government.
