Nigeria's FAAC allocates N2.3 trn May revenue, earmarks N500 bn for security fund

The Federation Account Allocation Committee (FAAC) announced that N2.300 trillion of May 2026 federation revenue was shared among the federal government (N818.680 bn), state governments (N759.141 bn) and 774 local government councils (N534.277 bn), with oil‑producing states receiving N188.132 bn as derivation revenue. The total gross revenue available was N3.395 trillion; deductions included N123.546 bn for collection costs and N971.610 bn for transfers, savings and refunds. Statutory revenue rose to N2.651 trillion, while VAT revenue fell to N743.668 bn.

In addition, sources confirmed that N500 bn was deducted from the May allocation to fund a national security emergency intervention. The deduction formed part of pre‑distribution adjustments that also included a N250 bn Military Intervention Fund, a N252 bn Infrastructure Development Fund for states and a N450 bn Non‑Oil Excess Revenue Account, totalling N952 bn in major deductions. The security fund is intended to address escalating insecurity across Nigeria, including insurgency, banditry, kidnappings and pipeline vandalism.