FG, States, LGs Share N2.3trn May Revenue Despite VAT Decline

By Our Correspondent

The Federation Account Allocation Committee (FAAC) has distributed N2.300 trillion from the May 2026 Federation Account revenue among the Federal Government, the 36 states, and the 774 local government councils.

This was disclosed by the Office of the Auditor-General of the Federation (OAGF), with the Director of Press and Public Relations, Bawa Mokwa, stating that the allocation was approved during the June 2026 FAAC meeting held in Abuja on Wednesday, June 17, 2026.
Breakdown of the N2.3 Trillion Allocation
According to FAAC, the distributable revenue comprised:
N1.611 trillion as distributable statutory revenue
N688.785 billion as distributable Value Added Tax (VAT) revenue
From the total amount shared:
Federal Government: N818.680 billion
State Governments: N759.141 billion
Local Government Councils: N534.277 billion
In addition, oil-producing states received N188.132 billion as 13 percent derivation revenue from mineral resources.
Gross Statutory Revenue Rises
FAAC reported that gross statutory revenue for May 2026 stood at N2.651 trillion, representing an increase of N273.623 billion over the N2.378 trillion recorded in April 2026.
The N1.611 trillion distributable statutory revenue was shared as follows:
Federal Government: N749.801 billion
States: N380.309 billion
Local Governments: N293.202 billion
Derivation Revenue: N188.132 billion
The committee noted significant increases in collections from Companies Income Tax (CIT), Capital Gains Tax (CGT), Stamp Duty Tax (SDT), Petroleum Profit Tax (PPT), Hydrocarbon Tax (HT), Oil and Gas Royalty, as well as Import Duty during the month.
VAT Revenue Declines
Despite the increase in oil-related revenues, gross VAT revenue dropped to N743.668 billion in May from N806.617 billion in April, reflecting a decline of N62.949 billion.
The distributable VAT revenue of N688.785 billion was allocated as follows:
Federal Government: N68.879 billion
States: N378.832 billion
Local Governments: N241.075 billion
FAAC added that VAT, Excise Duty, and CET Levies recorded considerable declines during the period.
Revenue and Deductions
The committee further disclosed that the total gross revenue available in May was N3.395 trillion.
After deductions:
Cost of collection: N123.546 billion
Transfers and refunds: N971.610 billion
The May 2026 revenue distribution highlights the growing contribution of oil-related taxes to government earnings, even as VAT collections weakened, a development expected to influence budget planning and third-quarter spending by states and local governments.
Source: Office of the Auditor-General of the Federation.