The Federation Account Allocation Committee (FAAC) has distributed a total of N2.300tn to the federal government, state governments and local government councils as revenue allocation for May 2026.

The allocation was disclosed in a statement issued on Thursday by the Head of Information and Public Relations at the Ministry of Finance, Mr. Efe Ovuakporie.

According to the statement, the total distributable revenue comprised of N1.611tn from statutory revenue and N688.785bn from Value Added Tax.

A breakdown of the allocation showed that the federal government received N818.680bn, while the 36 state governments got N759.141bn. 

Local government councils received N534.277bn, while oil-producing states were allocated an additional N188.132bn as 13 per cent derivation revenue.

The committee also reported that gross statutory revenue available in May stood at N2.652tn, representing an increase of N273.623bn from the N2.378tn recorded in April 2026.

FAAC attributed the improved revenue performance largely to higher collections from Companies Income Tax, Capital Gains Tax, Stamp Duties, Petroleum Profit Tax, Hydrocarbon Tax and oil royalties during the month under review.

However, the committee noted declines in revenue generated from Import Duty, Value Added Tax, Excise Duty and Common External Tariff levies when compared with the previous month.

Gross VAT revenue for May was put at N743.668bn, lower than the N806.617bn collected in April.

Despite the drop in VAT receipts, FAAC noted that the overall revenue position remained strong, supported by improved inflows from petroleum-related taxes and Companies Income Tax collections.

The committee added that the increase in statutory revenue contributed significantly to the total distributable pool shared among the three tiers of government for the month.