FAAC allocation soars by 26% to N10.45trn in 5months

The total allocations disbursed to federal, state, and local governments in the first five months (January – May) 2026 stood at N10.45 trillion, representing a 25.85 percent increase from N8.30 trillion disbursed in the same period of 2025.

BusinessDay’s analysis of the Federation Account Allocation Committee (FAAC) monthly report showed that a total of N1.96trillion was disbursed to the three tiers in January, N1.89 trillion was disbursed in February, and N2.04 trillion in March.

The total amount disbursed in April was N2.26 trillion, and N2.30 trillion was disbursed in May 2026.

Of this amount, the federal government received N3.72 trillion, state governments received N3.56 trillion, while local government councils received a total of N2.51 trillion from January to May.

Meanwhile, for the year 2025, the federal, state and federal governments received a total of N1.70 trillion in January, N1.68 trillion in February, and N1.58 trillion in March 2026. Total disbursements were N1.68 trillion and N1.66 trillion in the months of April and May 2025, respectively.

On the revenue side, the FAAC reports showed that the total gross revenue available in the period was N13.76 trillion, comprised of gross statutory and value-added tax.

On a monthly basis, the gross revenue recorded was N2.59 trillion in January, N2.23 trillion in February, N2.36 trillion in March, N3.18 trillion in April and N3.40 trillion in May 2026.

The federal government recently attributed the increase in revenue to the improved receipts from petroleum-related taxes.

Income from the oil and gas sector has recorded a boost following the implementation of the Executive Order No. 9 signed by President Tinubu in February. The order mandates all royalty, tax, and profit oil/gas be remitted directly to the Federation Account to maximise government revenue.

It also prohibits the Nigerian National Petroleum Company Limited (NNPCL) from deducting 30 percent for the Frontier Exploration Fund (FEF) and 30 percent for management fees from profits.

With this order, the statutory payments to the federation account by the NNPCL increased from N726 billion in January to N3.71 trillion in April 2026.