The Federation Account Allocation Committee (FAAC) has distributed a total of N2.300 trillion to the federal, state and local governments as revenue allocation for May 2026, reflecting improved earnings from key tax and petroleum-related sources.
According to details released by the Federal Ministry of Finance on Thursday, the distributable revenue consisted of N1.611 trillion generated from statutory revenue and N688.785 billion derived from Value Added Tax (VAT) collections.
Under the allocation formula, the Federal Government received N818.680 billion, while the 36 state governments shared N759.141 billion.
Local Government Councils were allocated N534.277 billion, and oil-producing states received an additional N188.132 billion as 13 percent derivation revenue.
The committee disclosed that gross statutory revenue available during the month rose to N2.652 trillion, representing an increase of N273.623 billion compared to the N2.378 trillion recorded in April 2026.
FAAC attributed the revenue growth largely to stronger collections from Companies Income Tax (CIT), Capital Gains Tax (CGT), Stamp Duties, Petroleum Profit Tax (PPT), Hydrocarbon Tax (HT) and oil royalties.
However, not all revenue streams recorded gains.
The committee noted declines in receipts from Import Duty, Value Added Tax, Excise Duty and Common External Tariff (CET) levies during the review period.
Gross VAT collections for May stood at N743.668 billion, down from N806.617 billion generated in April, indicating a slowdown in consumption-related tax receipts.
Despite the drop in VAT earnings, the overall revenue performance remained positive, supported by increased inflows from petroleum-related taxes and improved corporate tax collections.
The latest allocation underscores the continued importance of oil sector revenues and corporate taxation in sustaining government finances across Nigeria’s three tiers of administration.
