The Federation Account Allocation Committee (FAAC) has distributed a total of N2.300 trillion to the Federal Government, state governments and local government councils as revenue allocation for May 2026.
The allocation was confirmed at the June 2026 FAAC meeting and comprises N1.611 trillion from statutory revenue and ₦688.785 billion generated from Value Added Tax (VAT).
A breakdown of the distributable revenue shows that the Federal Government received N818.680 billion, while the 36 states shared N759.141 billion. Local Government Councils received N534.277 billion, while oil-producing states got an additional N188.132 billion as 13 per cent derivation revenue.
FAAC reported that gross statutory revenue for May 2026 stood at ₦2.652 trillion, representing an increase of N273.623 billion compared to the N2.378 trillion recorded in April 2026.
According to the committee, the growth in statutory revenue was driven by improved collections from Companies Income Tax (CIT), Capital Gains Tax, Stamp Duties, Petroleum Profit Tax (PPT), Hydrocarbon Tax, and Oil Royalties.
However, gross VAT revenue declined during the period, falling to N743.668 billion in May from N806.617 billion recorded in April.
Despite the drop in VAT receipts, FAAC noted that stronger earnings from petroleum-related taxes and Companies Income Tax helped bolster the overall revenue performance for the month, resulting in the higher distributable revenue shared among the three tiers of government.
The committee expressed optimism that sustained improvements in key revenue streams would continue to support government finances and fiscal operations across the country.