The Federation Account Allocation Committee shared N2.3tn among the
Federal Government, states and local government councils from May 2026
revenue, representing an increase of N43bn from the N2.26tn distributed in the
previous month.
The latest allocation marks a 1.9 per cent month-on-month increase and
continues the upward trend in federation revenues. The N2.257tn shared from
April 2026 revenue had itself exceeded the N2.04tn distributed for March
revenue by N217bn, while the March allocation was N150bn higher than the
N1.89tn shared in February.
The figures were contained in a statement issued by the Office of the
Accountant-General of the Federation, Bawa Mokwa, following the June 2026
Federation Account Allocation Committee meeting held in Abuja.
According to the statement, “A total sum of N2.300tn, being May 2026
Federation Account Revenue, has been shared to the Federal Government, states
and the local government councils.”
The statement said the N2.3tn distributable revenue comprised N1.611tn in
statutory revenue and N688.785bn in Value Added Tax revenue.
A communiqué issued after the meeting showed that total gross revenue
available in May stood at N3.395tn. From this amount, N123.546bn was
deducted as the cost of collection, while N971.610bn was set aside for transfers
and refunds.
The committee reported continued growth in statutory revenue collections
during the month. According to the communiqué, gross statutory revenue rose
to N2.651tn in May from N2.378tn in April, representing an increase of
N273.623bn.
However, VAT collections declined during the period. Gross VAT revenue fell
to N743.668bn in May from N806.617bn recorded in April, a decrease of
N62.949bn. Despite the drop in VAT receipts, stronger inflows from oil-related
taxes and other revenue sources helped lift the total distributable revenue.
The communiqué stated, “In May 2026, Companies Income Tax, CGT, SDT,
Petroleum Profit Tax, Hydrocarbon Tax, Oil and Gas Royalty increased
significantly, while Import Duty, Value Added Tax, Excise Duty and CET
Levies decreased considerably.”
A breakdown of the N2.300tn distributable revenue showed that the Federal
Government received N818.680bn, while state governments received
N759.141bn.
The 774 local government councils received N534.277bn, while oil-producing
states shared N188.132bn as 13 per cent derivation revenue.
From the N1.611tn statutory revenue, the Federal Government received
N749.801bn, states received N380.309bn, while local governments got
N293.202bn. The oil-producing states also received N188.132bn as derivation
revenue from the statutory component.
The distributable VAT revenue of N688.785bn was shared with the Federal
Government receiving N68.879bn, state governments receiving N378.832bn,
and local government councils receiving N241.075bn.
The latest allocation shows the resilience of federation revenues amid mixed
performance across major revenue streams.
While VAT receipts, import duties and excise duties weakened during the
month, higher collections from Companies Income Tax, Petroleum Profit Tax,
Hydrocarbon Tax and oil and gas royalties helped offset the decline and pushed
statutory revenue to a new high.