FAAC allocation rises to N2.3tn on stronger revenues

Nigeria's Federation Account Allocation Committee (FAAC) distributed N2.30 trillion from May 2026 revenue, marking a N43 billion increase from the N2.26 trillion shared in April. This latest allocation represents a 1.9 percent month-on-month rise, continuing a positive trend in the nation's federation revenues.

The N2.300 trillion distributable revenue comprises N1.611 trillion in statutory revenue and N688.785 billion in Value Added Tax (VAT) revenue. Total gross revenue available in May stood at N3.395 trillion, with deductions for cost of collection and transfers amounting to N123.546 billion and N971.610 billion, respectively.

The committee reported continued growth in statutory revenue collections, with gross statutory revenue rising to N2.651 trillion in May from N2.378 trillion in April. This increase was driven by significant rises in Companies Income Tax, CGT, SDT, Petroleum Profit Tax, Hydrocarbon Tax, and Oil and Gas Royalty. However, VAT collections saw a decline, falling to N743.668 billion in May from N806.617 billion in April.

Despite the drop in VAT receipts, stronger inflows from oil-related taxes and other revenue sources boosted the total distributable revenue. The Federal Government received N818.680 billion, state governments received N759.141 billion, and the 774 local government councils received N534.277 billion. Additionally, oil-producing states shared N188.132 billion as 13 percent derivation revenue.

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A total sum of N2.300tn, being May 2026 Federation Account Revenue, has been shared to the Federal Government, States and the Local Government Councils.