 shared ₦2.3 trillion among the Federal Government, states, and local governments.){kind=link}
FAAC Shares ₦2.3tn Among FG, States, LGs in May
The Federation Account Allocation Committee (FAAC) shared ₦2.3 trillion among the Federal Government, states, and local governments from May 2026 revenue, marking a ₦43bn increase from April’s ₦2.26tn.
This represents a 1.9% month-on-month rise, continuing the upward trend in federation revenues. March’s ₦2.04tn allocation had already exceeded February’s ₦1.89tn by ₦150bn.
According to FAAC’s communiqué, May’s distributable revenue comprised ₦1.611tn in statutory revenue and ₦688.8bn in VAT receipts. Gross revenue stood at ₦3.395tn, with ₦123.5bn deducted for collection costs and ₦971.6bn set aside for transfers and refunds.
Statutory revenue collections grew strongly, rising to ₦2.651tn in May from ₦2.378tn in April, while VAT collections fell to ₦743.7bn from ₦806.6bn, a decline of ₦62.9bn.
The communiqué noted: “In May 2026, Companies Income Tax, CGT, SDT, Petroleum Profit Tax, Hydrocarbon Tax, Oil and Gas Royalty increased significantly, while Import Duty, Value Added Tax, Excise Duty and CET Levies decreased considerably.”
From the ₦2.3tn shared, the Federal Government received ₦818.7bn, states got ₦759.1bn, and local governments received ₦534.3bn. Oil-producing states shared ₦188.1bn as 13% derivation revenue.
Breaking down statutory revenue alone: FG received ₦749.8bn, states ₦380.3bn, LGs ₦293.2bn, and oil-producing states ₦188.1bn. From VAT, FG got ₦68.9bn, states ₦378.8bn, and LGs ₦241.1bn.
Despite weaker VAT and import duty collections, stronger inflows from oil-related taxes and royalties lifted overall statutory revenue, underscoring the resilience of federation revenues amid mixed performance across streams.