FAAC allocates N2.3tn for May 2026 as statutory revenue rise offsets VAT decline
The Federation Account Allocation Committee distributed N2.3 trillion to federal, state and local governments for May 2026 revenue sharing, based on the June 2026 FAAC meeting in Abuja. This comprises N1.611 trillion from statutory revenue and N688.785 billion from VAT, after deducting N123.546 billion for collection costs and N971.610 billion for transfers/refunds from gross revenue of N3.395 trillion.
Federal Government received N818.680 billion, state governments got N759.141 billion, and local government councils were allocated N534.277 billion. Oil-producing states received N188.132 billion as constitutionally mandated 13% derivation revenue. Statutory revenue increased significantly to N2.651 trillion (up N273.623 billion from April), while VAT revenue declined to N743.668 billion (down N62.949 billion), with the statutory gain offsetting the VAT drop.
This allocation reflects mixed performance across revenue streams: Companies Income Tax, Capital Gains Tax, Stamp Duties, Petroleum Profit Tax, Hydrocarbon Tax, Oil and Gas Royalty and Import Duty saw increases, while VAT, Excise Duty and CET Levies declined. The higher statutory revenue provided additional fiscal support for ongoing infrastructure and social spending needs across all tiers of government.
With states receiving N759 billion this month, how might this allocation affect infrastructure projects, salary payments, or social programs in your state and local government area?