Federal, state and local governments shared N2.300 trillion from the Federation Account for May 2026, with allocations driven largely by statutory revenue and VAT, while petroleum taxes and company income tax boosted overall receipts despite a drop in VAT collections.

The Federation Account Allocation Committee (FAAC) has shared a total of N2.300 trillion among the three tiers of government as revenue allocation for May 2026.

The figure was approved at the committee’s June 2026 meeting after it considered revenue inflows for the month of May.

According to FAAC, the distributable revenue of N2.300 trillion comprised N1.611 trillion from statutory revenue and N688.785 billion from Value Added Tax (VAT).

From the total allocation, the Federal Government received N818.680 billion, while state governments got N759.141 billion. Local Government Councils received N534.277 billion, and oil-producing states received N188.132 billion as 13 per cent derivation revenue.

The gross statutory revenue for the month stood at N2.652 trillion, representing an increase of N273.623 billion compared to the N2.378 trillion recorded in April 2026.

FAAC reported that collections rose in several key revenue streams, including Companies Income Tax (CIT), Capital Gains Tax (CGT), Stamp Duties, Petroleum Profit Tax (PPT), Hydrocarbon Tax (HT) and oil royalties during the period under review.

However, there were declines in Import Duty, Value Added Tax (VAT), Excise Duty and Common External Tariff (CET) levies compared to the previous month.

Gross VAT revenue stood at N743.668 billion in May 2026, lower than the N806.617 billion recorded in April.

Despite the drop in VAT and some import-related levies, FAAC said overall revenue performance was supported by stronger inflows from petroleum-related taxes and Companies Income Tax.

The committee said the distribution was carried out in line with existing laws and the approved revenue allocation formula.