The Federation Account Allocation Committee (FAAC) disbursed a total of N6.58 trillion to the federal government, states, and local government councils in May and June 2026, covering revenue generated in April and May. This information was obtained from disbursement reports released by the National Bureau of Statistics (NBS). The reports provide a breakdown of the revenue allocation for the two months.
The two-month total was made up of N3.18 trillion shared in May and N3.40 trillion shared in June, an increase of N210.68 billion, or 6.6 per cent, between the two months. The federal government received N1.61 trillion over the period, made up of N787.35 billion in May and N818.68 billion in June. This indicates a rise in revenue allocation to the federal government.
States received N1.53 trillion in total, comprising N772.36 billion in May and N759.14 billion in June, while local government councils received N1.07 trillion, made up of N540.15 billion in May and N534.28 billion in June. The allocation to states and local government councils shows a mixed trend, with states experiencing a slight decline in revenue.
Of the total N6.58 trillion disbursed, N4.78 trillion was drawn from the Statutory Account and N1.55 trillion from Value Added Tax (VAT). A further N250 billion was augmented from non-oil revenue in May; no augmentation was recorded in the June disbursement. The Statutory Account and VAT are the primary sources of revenue for FAAC disbursements.
Oil-producing states received a combined N345.38 billion from the 13 per cent derivation fund over the two months, made up of N157.25 billion in May and N188.13 billion in June. The revenue-generating agencies, comprising the Nigeria Revenue Service (NRS) and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), received a combined N237.3 billion as cost of revenue collection across the two disbursements.
The NBS said the FAAC data is provided statutorily by the Office of the Accountant General of the Federation (OAGF) and reported by the Bureau on a monthly basis. A month-on-month comparison showed a marked divergence in the trajectory of the two revenue streams. Statutory disbursement rose from N2.13 trillion in May to N2.65 trillion in June, an increase of N520 billion, or 24.4 per cent.
VAT disbursement moved in the opposite direction, falling from N806.62 billion in May to N743.67 billion in June, a decline of N62.95 billion, or 7.8 per cent. The rise in statutory revenue lifted the federal government's allocation, while the decline in VAT disbursement affected the overall revenue allocation.
Key points
- FAAC disbursed N6.58 trillion to the federal government, states, and local government councils in May and June 2026.
- The federal government received N1.61 trillion over the two months, with N787.35 billion in May and N818.68 billion in June.
- Statutory disbursement rose by 24.4 per cent, while VAT disbursement declined by 7.8 per cent between May and June 2026.
