The Federation Account Allocation Committee (FAAC) distributed a total of N10.456 trillion to the Federal Government, state governments, local government councils and oil-producing states during its first five meetings of 2026.
An analysis of official FAAC records from January to May 2026 showed that distributable revenue maintained an upward trend after a brief decline in February, reaching a record N2.30 trillion at the June meeting where May earnings were shared.
The allocations comprised N1.969 trillion distributed in January from December 2025 revenue, N1.894 trillion in February, N2.036 trillion in March, N2.257 trillion in April and N2.30 trillion in May.
A breakdown of the total allocation revealed that the Federal Government received N3.724 trillion, while the 36 states shared N3.547 trillion. The 774 local government councils received N2.513 trillion, while oil-producing states got N673.177 billion as 13 per cent derivation revenue.
FAAC allocations remain the primary source of revenue for most state and local governments, making the monthly distribution process a critical component of public finance management in Nigeria.
According to the analysis, January’s allocation consisted of N1.084 trillion in statutory revenue, N846.507 billion from Value Added Tax (VAT) and N38.110 billion from the Electronic Money Transfer Levy (EMTL). During the month, the Federal Government received N653.500 billion, states received N706.469 billion, local governments got N513.272 billion, while oil-producing states received N96.083 billion.
The February allocation declined to N1.894 trillion due largely to lower VAT, Companies Income Tax, Petroleum Profit Tax and Hydrocarbon Tax receipts, although oil and gas royalties and excise duties recorded improvements.
Revenue rebounded in subsequent months, with N2.036 trillion shared in April from March earnings, followed by N2.257 trillion in May and a record N2.30 trillion in June.
Data showed that statutory revenue collections increased significantly during the period, offsetting fluctuations in VAT and customs receipts. Gross statutory revenue rose from N2.378 trillion in April to N2.652 trillion in May, representing an increase of approximately 11.5 per cent.
However, VAT revenue declined by about 7.8 per cent, falling from N806.617 billion to N743.668 billion within the same period.
Higher collections from Companies Income Tax, Capital Gains Tax, Stamp Duties, Petroleum Profit Tax, Hydrocarbon Tax and oil and gas royalties helped sustain the growth in distributable revenue despite weaknesses in VAT and customs-related earnings.
The trend highlights the increasing contribution of petroleum-related taxes and statutory revenue to the Federation Account, ensuring monthly distributions remained above N2 trillion from March onward.
