BY COBHAM NSA – The Federation Account Allocation Committee (FAAC) has shared a mouth-watering ₦2.300 trillion as distributable revenue from May 2026 earnings among Nigeria’s three tiers of government, marking a 1.9 percent month-on-month increase.
Rising from its June 2026 meeting held in Abuja, FAAC indicated that the encouraging distribution figure, which includes ₦1.611 trillion in statutory revenue and ₦688.785 billion in Value Added Tax (VAT) collections, was driven by strong non-oil tax collections and statutory revenue.
According to its communiqué, the total gross revenue of N3.395 trillion was available in the month of May 2026 while total deduction for cost of collection was N123.546 billion with total transfers and refunds amounting to N971.610 billion.
The communiqué also indicated that gross statutory revenue of N2.651 trillion was received for the month, a figure higher than the sum of N2.378 trillion received in the preceding month by N273.623 billion.
However, the gross revenue of N743.668 billion was available from VAT in May 2026, an amount lower than the N806.617 billion available in April 2026 by about N62.949 billion.
Presenting a breakdown of the N2.300 trillion total distributable revenue, FAAC explained that the Federal Government got a total sum of N818.680 billion, the State Governments received N759.141 billion, and the Local government Council got N534.277 billion, while the sum of N188.132 billion, being 13 percent of mineral revenue, was shared to the benefiting State as derivation revenue.
The communique also stated that of the N1.611 trillion distributable statutory revenue, N749.801 billion went to the Federal Government, the State Governments received N380.309 billion, the Local Government Councils got N293.202 billion and N188.132 billion, representing 13 percent of mineral revenue went to the benefiting States as derivation revenue.
Figures from FAAC further showed that from the N688.785 billion VAT revenue, the Federal Government received N68.879 billion, the State Governments got N378.832 billion and the Local Government Councils pocketed N241.075 billion.
Meanwhile, a statement by Bawa Mokwa, Director, Press and Public Relations, Office of the Accountant General of the Federation (OAGF) quoted the FAAC communique as explaining that in the month under review, earnings from Companies Income Tax (CIT), Capital Gains Tax (CGT), Stamp Duty (SDT), Petroleum Profit Tax (PPT), Hydrocarbon Tax (HT), Oil and Gas Royalty increased significantly, indicating better business profitability and regulatory compliance
On the contrary, revenue accruing from Value Added Tax (VAT), Import Duties, Excise Duty, and Common External Tariff (CET) Levies dropped considerably, pointing likely to reduced consumer spending power or lower import/trade volumes.
