FAAC Distributes N2.3trn to Federal, State, Local Governments for May

The Federation Account Allocation Committee (FAAC) has shared a total of N2.300 trillion among the federal, state and local governments as revenue allocation for May 2026.

The total distributable revenue of N2.300 trillion comprised N1.611 trillion from Statutory Revenue and N688.785 billion from Value Added Tax (VAT), according to the Ministry of Finance, in a statement by the Head, Information and Public Relations, Efe Ovuakporie, Thursday.

The federal government received N818.680 billion, while State Governments received N759.141 billion. Local Government Councils were allocated N534.277 billion, while the oil-producing states received extra N188.132 billion as 13 per cent derivation revenue.

The gross statutory revenue available for the month stood at N2.652 trillion, representing an increase of N273.623 billion over the N2.378 trillion recorded in April 2026.

FAAC reported significant increases in collections from Companies Income Tax (CIT), Capital Gains Tax (CGT), Stamp Duties, Petroleum Profit Tax (PPT), Hydrocarbon Tax (HT) and Oil Royalties during the month under review.

However, collections from Import Duty, Value Added Tax (VAT), Excise Duty and Common External Tariff (CET) Levies recorded declines compared to the preceding month.

Gross VAT revenue for May 2026 stood at N743.668 billion, lower than the N806.617 billion collected in April 2026.

The Committee noted that despite the decline in VAT collections, the overall revenue position for the month was strengthened by improved receipts from petroleum-related taxes and Companies Income Tax.