Revenue Sharing: FAAC Allocates N759bn to States, N818bn to Federal Government

The Federation Account Allocation Committee (FAAC) has shared the sum of ₦2.3 trillion as May 2026 revenue to the three tiers of government.

The allocation was announced in a statement issued on Wednesday by the Director of Press and Public Relations at the Office of the Accountant-General of the Federation, Bawa Mokwa, it was reported.

The statement said the revenue was shared at the June 2026 FAAC meeting held in Abuja.

The amount is an increase from the ₦2.25 trillion shared by the three tiers of government in April.

Mokwa said the distributable revenue of ₦2.3 trillion consists of statutory revenue of ₦1.611 trillion and Value Added Tax (VAT) revenue of ₦688.785 billion.

The communiqué issued after the meeting said the total gross revenue available in May was N3.39tn.

The committee said ₦123.54 billion was deducted as cost of collection while ₦971.61 billion was recorded as transfers and refunds.

FAAC further said that the gross statutory revenue for May was at ₦2.65tn, showing an increase of ₦273.62bn against ₦2.37tn in April.

However, Gross VAT revenue fell from ₦806.61 billion in April to ₦743.66 billion in May, a drop of ₦62.94 billion.

FG Gets N818bn
From the ₦2.3tn distributable revenue, it was understood that the Federal Government got ₦818.68bn, while state governments received ₦759.14bn.

Local government councils received N534.27 billion.

The committee also said ₦188.132bn, representing 13 per cent of mineral revenue was shared to benefiting states as derivation revenue.

“The sum of ₦188.132 billion (13 percent of mineral revenue) was shared to the benefiting states as derivation revenue, while the local government council received ₦534.277 billion,” the committee said.

The communiqué said the Federal Government received N749.801bn out of the N1.611tn distributable statutory revenue, while state governments got N380.309bn.

Local government councils received ₦293.202bn from statutory revenue.

FAAC said ₦188.132bn, representing 13 per cent of mineral revenue, was also shared to benefiting states as derivation revenue.

“The sum of ₦188.132 billion (13 per cent of mineral revenue) was shared to the benefiting states as derivation revenue and the local government councils received ₦293.202 billion,” the communiqué added.

Decline in VAT Revenue
Of the ₦688.785 billion VAT revenue shared for the month, the Federal Government got ₦68.87bn, while state governments got ₦378.83bn.

Local government councils got ₦241.07bn from the VAT pool.

Revenue from Companies Income Tax, Capital Gains Tax, Stamp Duties, Petroleum Profit Tax, Hydrocarbon Tax, oil and gas royalties and import duty increased significantly during the period, Mokwa said.

However, he said collections from VAT, excise duty and CET levies dropped.