Allocations shared among the federal, state, and local governments through the Federation Account Allocation Committee (FAAC) increased to N10.45 trillion between January and May 2026, representing a 25.85 per cent rise from the N8.30 trillion distributed during the same period in 2025.
An analysis of FAAC reports showed that the three tiers of government received N1.96 trillion in January, N1.89 trillion in February, N2.04 trillion in March, N2.26 trillion in April, and N2.30 trillion in May 2026. The steady increase reflects stronger revenue inflows into the federation account.
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Of the total amount distributed in the first five months of the year, the Federal Government received N3.72 trillion, while state governments got N3.56 trillion. Local government councils received N2.51 trillion over the same period.
In comparison, total allocations in the corresponding period of 2025 were significantly lower. FAAC disbursed N1.70 trillion in January, N1.68 trillion in February, N1.58 trillion in March, N1.68 trillion in April and N1.66 trillion in May, bringing total distributions for the five months to N8.30 trillion.
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Revenue available for sharing also recorded substantial growth. FAAC data showed that gross revenue from statutory sources and Value Added Tax reached N13.76 trillion between January and May 2026.
Monthly gross revenue stood at 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. The figures indicate a significant improvement in government earnings, particularly in the second quarter of the year.
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The Federal Government has linked the stronger revenue performance to increased receipts from petroleum-related taxes and reforms in the oil and gas sector.
A major contributor was Executive Order No. 9, signed by President Bola Tinubu in February 2026. The directive requires all royalty payments, taxes and profit oil and gas revenues to be remitted directly into the Federation Account.
The order also stopped the Nigerian National Petroleum Company Limited from making certain deductions from profits, resulting in statutory remittances to the federation account rising from N726 billion in January to N3.71 trillion in April 2026. The increase has strengthened government revenues and boosted allocations to all tiers of government.
