The Federation Account Allocation Committee (FAAC) has officially announced the distribution of N2.3 trillion as revenue allocation for May 2026, marking a notable increase from the previous month's allocation of N2.26 trillion. This figure includes both statutory revenue and Value Added Tax (VAT) contributions, reflecting the broader economic activity and tax compliance trends observed during the month. The total distributable revenue amounted to N2.3 trillion, comprising N1.611 trillion from statutory sources and N688.785 billion from VAT. This allocation underscores the ongoing efforts to ensure equitable financial distribution across all levels of government.
The breakdown of the allocation reveals that the Federal Government received N818.680 billion, while State Governments collectively received N759.141 billion. Local Government Councils were allocated N534.277 billion, highlighting their critical role in grassroots governance. Additionally, oil-producing states received an additional N188.132 billion as part of the 13 percent derivation revenue, which is typically reserved for states contributing significantly to national oil production. This allocation reflects the complex interplay between fiscal policy and regional economic disparities.
The data indicates a positive trend in statutory revenue collections, with a gross amount of N2.651 trillion recorded in May 2026, surpassing the N2.378 trillion recorded in April by N273.623 billion. This increase can be attributed to strong performances in several tax categories, including Companies Income Tax (CIT), Capital Gains Tax (CGT), Stamp Duties, Petroleum Profit Tax (PPT), Hydrocarbon Tax (HT), and Oil Royalties. These sectors have shown robust growth, contributing to the overall improvement in the federation's revenue position.
Conversely, there were declines in certain revenue streams, notably Value Added Tax (VAT), Import Duty, Excise Duty, and Common External Tariff (CET) Levies. The gross VAT revenue for May 2026 stood at N743.668 billion, down from N806.617 billion in April—a decrease of N62.949 billion. Despite these reductions, the overall revenue picture remained favorable due to the enhanced contributions from petroleum-related taxes and CIT. This balance highlights the challenges faced by the revenue system, where some areas experience stagnation or decline while others show remarkable growth.
The allocation process was marked by transparency and adherence to established protocols, with detailed reports issued by officials such as Bawa Mokwa, Director of Press and Public Relations in the Office of the Accountant-General of the Federation. These reports emphasized the resilience of federation revenues amidst varying performance across different revenue streams. The figures presented underscore the importance of maintaining diverse revenue sources to mitigate the impact of fluctuations in specific areas.
Looking ahead, the expectations are that the current trajectory will continue, driven by sustained improvements in key tax categories and potential reforms aimed at enhancing compliance and broadening the tax base. The upcoming months will likely see continued monitoring of revenue trends, with adjustments made as necessary to maintain fiscal stability and support developmental initiatives across all tiers of government. As the nation navigates its economic landscape, the role of effective fiscal management remains crucial in ensuring sustainable growth and equitable resource distribution.
3 reports
Vanguard NigeriaIndependentCenterFactual 95Objective 9020 days agoThe Federation Account Allocation Committee (FAAC) distributed N2.300 trillion in revenue allocations to the federal, state, and local governments for May 2026. This included N1.611 trillion from Statutory Revenue and N688.785 billion from Value Added Tax (VAT). The Federal Government received N818.680 billion, State Governments received N759.141 billion, and Local Government Councils were allocated N534.277 billion. Additionally, oil-producing states received an extra N188.132 billion as 13% derivation revenue. The gross statutory revenue for May was N2.652 trillion, showing an increase from
Bias read (Center): The article presents factual financial data without apparent ideological framing or biased language. It reports on revenue distribution figures and does not take a stance on policy or politics.
Why these scores (Factual 95 · Objective 90): Highly factual with detailed breakdown of allocations and revenue sources. Slight discrepancies in minor figures like N2.300 trillion vs N2.30tn but overall aligns with cross-source consensus. Presentation is neutral and informative.
The PunchIndependentCenterFactual 92Objective 9221 days agoThe Federation Account Allocation Committee (FAAC) allocated N2.30tn in May 2026 to the Federal Government, states, and local governments, marking a 1.9% increase compared to the previous month. This follows a consistent rise in federation revenues, with April’s allocation also exceeding March’s by N217bn. The distribution included N1.611tn in statutory revenue and N688.785bn in VAT revenue. Total gross revenue for May reached N3.395tn, with deductions for collection costs and transfers/refunds.
Bias read (Center): The article presents factual financial data without overtly favorable or critical language toward any political entity. It reports on revenue allocations and distributions using neutral terminology and does not frame the information in a way that suggests approval or criticism of specific parties or
Why these scores (Factual 92 · Objective 92): Accurate with clear reference to the FAAC meeting and revenue figures. Provides context on the upward trend in federation revenues. Neutral tone with no apparent bias or emotional language.
Vanguard NigeriaIndependentCenterFactual 85Objective 9021 days ago FG, states, others share N2.300trn May 2026 revenueThe Federation Account Allocation Committee (FAAC) distributed N2.3 trillion to the Federal government, states, and local governments in May 2026. This amount includes N1.611 trillion in statutory revenue and N688.785 billion in VAT revenue. The total gross revenue for May 2026 was N3.395 trillion, with deductions for collection costs and transfers/refunds. The statutory revenue for May was N2.651 trillion, an increase compared to the previous month, while VAT revenue decreased slightly.
Bias read (Center): The article presents factual financial data without apparent ideological framing, word-choice, or emphasis that would indicate a political lean. It reports on revenue distribution figures and does not take a stance or provide commentary that could suggest bias.
Why these scores (Factual 85 · Objective 90): The article provides detailed figures and sources them through the OAGF spokesperson, making it highly factual. It appears to align with the cross-source consensus, though some specific details may not be independently verified. The tone remains neutral and informative.
★
Keep the news honest.
ObjectiveNews is reader-funded and ad-free — we show you the bias instead of hiding it. Support independent journalism for €5/month.
Become a Supporter
NG
