The Federation Account Allocation Committee (FAAC) has distributed a total of ₦2.300 trillion to the three tiers of government as revenue allocation for May 2026.
The allocation was confirmed at the June 2026 FAAC meeting and comprised ₦1.611 trillion from statutory revenue and ₦688.785 billion from Value Added Tax (VAT).
According to the committee, the Federal Government received ₦818.680 billion, while state governments shared ₦759.141 billion. The 774 Local Government Councils received ₦534.277 billion, while oil-producing states were allocated an additional ₦188.132 billion as 13 per cent derivation revenue.
FAAC disclosed that gross statutory revenue for May 2026 stood at ₦2.652 trillion, representing an increase of ₦273.623 billion compared to the ₦2.378 trillion recorded in April.
The committee attributed the rise in revenue to improved collections from Companies Income Tax (CIT), Capital Gains Tax (CGT), Stamp Duties, Petroleum Profit Tax (PPT), Hydrocarbon Tax, and Oil Royalties.
However, gross VAT revenue declined during the period, dropping to ₦743.668 billion in May from ₦806.617 billion recorded in April.
Despite the decrease in VAT receipts, FAAC noted that stronger inflows from petroleum-related taxes and Companies Income Tax helped bolster the overall revenue position, resulting in the increased distributable revenue for May 2026.
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