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FAAC Distributes N2.3 Trillion May Revenue To Federal, State And

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5 months ago

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The Federation Account Allocation Committee (FAAC) has disbursed a total of N2.3 trillion to the Federal Government, states and local government councils as revenue allocation for May 2026.

Key Highlights:

  • FAAC distributed N2.3 trillion to federal, state, and local governments for May 2026.
  • The Federal Government received N818.7 billion, states N759.1 billion, and local councils N534.3 billion.
  • Oil-producing states shared N188.1 billion as 13% derivation revenue.
  • Gross statutory revenue increased from N2.378 trillion in April to N2.652 trillion in May.
  • Higher oil-related and corporate tax collections boosted revenue despite a decline in VAT receipts.

The development was disclosed in a statement issued by the Head of Information and Public Relations Unit, Efe Ovuakporie, following the committee’s June 2026 meeting, where members reviewed revenue inflows for the month under consideration.

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

Under the approved sharing formula, the Federal Government received N818.680 billion, while the 36 states were allocated N759.141 billion. The 774 local government councils received N534.277 billion, while oil-producing states shared N188.132 billion as 13 per cent derivation revenue.

FAAC also reported that the country’s gross statutory revenue rose to N2.652 trillion in May, representing an increase of N273.623 billion compared to the N2.378 trillion recorded in April 2026.

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The committee attributed the improvement in revenue largely to stronger collections from Companies Income Tax (CIT), Capital Gains Tax (CGT), Stamp Duties, Petroleum Profit Tax (PPT), Hydrocarbon Tax (HT), and Oil Royalties.

However, receipts from Import Duty, Value Added Tax, Excise Duty, and Common External Tariff (CET) Levies declined during the period.

Data presented at the meeting showed that gross VAT revenue fell to N743.668 billion in May from N806.617 billion recorded in April.

Despite the drop in VAT earnings, FAAC noted that higher inflows from petroleum-related taxes and corporate income taxes helped sustain the overall revenue performance for the month.

The committee stated that the allocation was made in line with existing statutory provisions and the approved revenue-sharing framework governing the Federation Account.

 

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