States, FG, LGs share N2.3tn FAAC revenue

Nigeria's Federation Account Allocation Committee (FAAC) has announced the distribution of N2.3tn in revenue for May 2026, marking a N43bn increase from the N2.26tn shared in April. This latest allocation represents a 1.9% month-on-month rise, continuing a trend of increasing federation revenues.

The N2.3tn distributable pool consists of N1.611tn from statutory revenue and N688.785bn from Value Added Tax (VAT). The total gross revenue available in May reached N3.395tn, with N123.546bn deducted for cost of collection and N971.610bn set aside for transfers and refunds.

FAAC reported a significant increase in statutory revenue collections in May, which rose to N2.651tn from N2.378tn in April. This growth was primarily fueled by substantial increases in Companies Income Tax, CGT, SDT, Petroleum Profit Tax, Hydrocarbon Tax, and Oil and Gas Royalty. However, VAT collections experienced a decrease, falling to N743.668bn in May from N806.617bn in April.

Despite the dip in VAT receipts, the overall increase in distributable revenue was bolstered by stronger inflows from oil-related taxes and other revenue streams. The Federal Government received N818.680bn, state governments obtained N759.141bn, and the 774 local government councils received N534.277bn. Additionally, oil-producing states shared N188.132bn as 13% derivation revenue.