Federal Government and States Receive N4.56 Trillion from FAAC
The Federal Government, alongside 36 states and 774 local government councils, has collectively received N4.56 trillion from the Federal Accounts Allocation Committee (FAAC). This distribution occurred within 30 days following the revenue generation periods of April and May 2026.
Details of Revenue Distribution for May
Data released by the Federation Accountant General revealed that the revenue of N2.3 trillion for May 2026 was allocated during the FAAC meeting held in Abuja in June. This meeting followed the earlier distribution of N2.257 trillion generated in April.
Increase in Allocation Compared to Previous Month
The recent allocation marks an increase of N43 billion from the previous month’s distribution. A communiqué issued post the June FAAC meeting clarified that the N2.3 trillion revenue comprised N1.611 trillion from statutory sources and N688.785 billion from Value Added Tax (VAT).
Analysis of Statutory Revenue Growth
The communiqué also noted a notable rise in gross statutory revenue, which escalated by N273.623 million from N2.378 trillion in April to N2.651 trillion in May. However, VAT receipts saw a downturn during the same period.
Understanding May’s Total Revenue and Distribution
The total gross revenue for May stood at N3.395 trillion. After deducting collection costs of N123.546 billion and remittances totaling N971.61 billion, a net amount of N2.3 trillion was available for distribution among different levels of government.
Allocation Breakdown for May 2026
The allocation breakdown indicated that the federal government received N818.68 billion, while states were awarded N759.141 billion, and local government councils secured N534.277 billion. Additionally, oil-producing states garnered N188.132 million from the 13% inducement revenue.
Comparison of Revenue Between April and May
In terms of allocations from April’s revenues, the federal government will receive N787.351 million, with states and local councils obtaining N772.360 million and N540.152 million, respectively. Oil-producing states received N157.254 million from induced revenue for that month.
FAAC’s Role in Revenue Distribution
The FAAC, as the constitutional authority, remains responsible for distributing revenues generated from federal accounts, which serve as the main financial lifeline for federal, state, and local governments. These allocations are crucial for funding essential services such as infrastructure, healthcare, and education, alongside the payment of civil service salaries.
Trends in Revenue Sources
The latest figures suggest that monthly allocations across the governmental tiers are stabilizing due to enhanced statutory revenue collections, despite variances in VAT and other non-oil revenue sources. Notably, collections from major revenue sources such as corporate income tax and petroleum profits tax showed significant improvements, while returns from VAT and excise duties experienced declines.
