FAAC Shares N2.3 Trillion with the Federal Government, States, and Local Governments

By Emma Ujah, Abuja Bureau Chief

The Federation Account Allocation Committee (FAAC) announced that it has distributed a total of N2.300 trillion to the federal, state and local governments for May 2026.

According to the Ministry of Finance, the distributable revenue of N2.300 trillion consisted of N1.611 trillion from statutory revenue and N688.785 billion from Value Added Tax (VAT), as stated by the Head of Information and Public Relations, Efe Ovuakporie, on Thursday.

In the allocation, the federal government received N818.680 billion, state governments were allocated N759.141 billion, and local government councils received N534.277 billion. Oil‑producing states were granted an additional N188.132 billion as a 13 percent derivation revenue.

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

FAAC highlighted significant rises 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.

Conversely, collections from Import Duty, Value Added Tax (VAT), Excise Duty and Common External Tariff (CET) levies fell compared to the preceding month.

Gross VAT revenue for May 2026 stood at N743.668 billion, down from 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.

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