FAAC Shares N2.3 Trillion May Revenue as Federal, State Governments Get Bigger Allocations
By Pan Afric Reporters
The Federation Account Allocation Committee (FAAC) has distributed a total of N2.300 trillion as revenue allocation for May 2026 to the Federal Government, state governments and local government councils, reflecting improved earnings driven largely by stronger petroleum-related tax receipts and Companies Income Tax collections.
The revenue sharing was disclosed in a statement issued by the Federal Ministry of Finance and signed by Efe Ovuakporie, Head of Information and Public Relations Unit, following the June 2026 meeting of the Federation Account Allocation Committee (FAAC).
According to the statement, the distributable revenue comprised N1.611 trillion from Statutory Revenue and N688.785 billion from Value Added Tax (VAT).
A breakdown of the allocation showed that the Federal Government received N818.680 billion, while state governments got N759.141 billion. The 774 local government councils shared N534.277 billion, while the oil-producing states received N188.132 billion as 13 per cent derivation revenue.
FAAC noted that the total distributable revenue was approved after members considered revenue receipts generated in May 2026.
The committee further revealed that the gross statutory revenue available for the month stood at N2.652 trillion, representing an increase of N273.623 billion compared to the N2.378 trillion recorded in April 2026.
The statement attributed the improved revenue performance to increased collections from Companies Income Tax (CIT), Capital Gains Tax (CGT), Stamp Duties, Petroleum Profit Tax (PPT), Hydrocarbon Tax (HT), and Oil Royalties.
“The gross statutory revenue available for the month stood at N2.652 trillion, representing an increase of N273.623 billion over the N2.378 trillion recorded in April 2026,” the committee stated.
Despite the overall increase in revenue, FAAC disclosed that some revenue streams experienced declines during the period under review.
The committee reported lower collections from Import Duty, Value Added Tax (VAT), Excise Duty and Common External Tariff (CET) Levies when compared with the previous month.
It also revealed that gross VAT revenue for May 2026 stood at N743.668 billion, down from the N806.617 billion recorded in April 2026.
However, FAAC emphasized that the drop in VAT receipts was offset by stronger inflows from petroleum-related taxes and corporate tax collections.
“Despite the decline in VAT collections, the overall revenue position for the month was strengthened by improved receipts from petroleum-related taxes and Companies Income Tax,” the committee stated.
The committee added that the distribution of revenue among the three tiers of government was carried out in accordance with existing laws and the approved revenue allocation formula.
The latest allocation is expected to boost the fiscal capacity of federal, state and local governments, providing additional resources for infrastructure development, public services and other critical government obligations across the country.
