The Federation Account Allocation Committee (FAAC) has distributed N2.30 trillion to the federal government, state governments and local government councils from revenue generated in May 2026, reflecting an increase of N43 billion compared to the previous month.
The latest disbursement continues a steady rise in federation allocations recorded in recent months.
The N2.30 trillion shared for May revenue exceeded the N2.257 trillion distributed from April revenue, which had also surpassed the March allocation of N2.04 trillion by N217 billion.
For March, the revenue was N150 billion higher than the N1.89 trillion shared for February.
Details of the allocation were disclosed in a statement issued on Wednesday by the Director of Press and Public Relations in the Office of the Accountant-General of the Federation, Bawa Mokwa, following the June 2026 meeting of FAAC in Abuja.
According to the statement, the distributable revenue of N2.30 trillion consisted of N1.611 trillion from statutory revenue and N688.785 billion generated through Value Added Tax.
A communiqué released after the meeting indicated that total gross revenue available in May stood at N3.395 trillion.
From the amount, N123.546 billion was deducted as collection costs, while N971.610 billion was earmarked for transfers, interventions and refunds.
FAAC reported stronger statutory revenue performance during the month, driven by higher collections from key tax and oil-related revenue sources.
Gross statutory revenue increased to N2.651 trillion in May from N2.378 trillion recorded in April, representing a rise of N273.623 billion.
In contrast, VAT collections recorded a decline. Gross VAT revenue fell from N806.617 billion in April to N743.668 billion in May, a drop of N62.949 billion.
Despite the decline in VAT earnings, increased inflows from Companies Income Tax, Capital Gains Tax, Stamp Duties, Petroleum Profit Tax, Hydrocarbon Tax, and oil and gas royalties boosted overall federation revenue.
The communiqué stated that revenues from Companies Income Tax, Capital Gains Tax, Stamp Duties, Petroleum Profit Tax, Hydrocarbon Tax and oil and gas royalties recorded significant growth during the period, while earnings from import duties, VAT, excise duties and Common External Tariff levies declined.
A breakdown of the N2.30 trillion shared showed that the federal government received N818.680 billion, while the 36 states shared N759.141 billion.
The 774 local government councils received N534.277 billion, while oil-producing states collected N188.132 billion as 13 per cent derivation revenue.
From the N1.611 trillion statutory revenue component, the federal government received N749.801 billion, states got N380.309 billion and local governments received N293.202 billion.
Oil-producing states also received N188.132 billion from the statutory revenue as derivation allocation.
For the N688.785 billion VAT revenue, the federal government received N68.879 billion, states shared N378.832 billion, while local governments received N241.075 billion.
The latest figures underscore the continued strength of federation revenues despite mixed outcomes across major revenue sources.
While VAT, import duties and excise duties recorded weaker performance, gains from corporate and petroleum-related taxes helped drive statutory revenue to a fresh high and sustain the upward trend in monthly allocations.
