By Onu Okorie

Mixed reactions have trailed the sum of N2.300 trillion, May 2026 Federation Account Revenue, shared to the Federal Government, States and the Local Government Areas. While some analysts expressed satisfaction over the increase in revenue when compared to the previous month, others argued that the benefits of the revenue increase are not trickling down to the people, given that a lot of social issues and infrastructure deficit still suffice.

A breakdown of the Federation Account Allocation Committee FAAC communiqué indicated that total gross revenue of N3.395 trillion was available in the month of May 2026. However, a total deduction for cost of collection was N123.546  billion while total transfers and refunds N971.610 billion.

The N2.300 trillion total distributable revenue comprised distributable statutory revenue of N1.611 trillion , distributable Value Added Tax VAT revenue of N688.785 billion.

According to the communiqué, gross statutory revenue of N2.651 trillion was received for the month of May 2026. This was higher than the sum of N2.378 trillion received in the preceding month by N273.623 billion.

Gross revenue of N743.668 billion  was available from the Value Added Tax VAT in May 2026. This was lower than the N806.617 billion  available in the month of April 2026 by N62.949 billion.

The communiqué stated that from the N2.300 trillion total distributable revenue, the Federal Government received total sum of N818.680 billion and the State Governments received total sum of N759.141 billion.

The Local government Council received N534.277 billion, while the sum of N188.132 billion 13% of mineral revenue, was shared to the benefiting State as derivation revenue. Acccording to a civil servant, Mr Kunle Sabastine who gave kudos to the federal government for improved revenue generation, “releasing such huge amount to the local government areas is a good omen because it would spur development in the grass root.”

On the N1.611 trillion distributable statutory revenue, the communiqué stated that the Federal Government received N749.801 billion and the State Governments received N380.309 billion.

The Local Government Councils received N293.202 billion and the sum of N188.132 billion 13% of mineral revenue, was shared to the benefiting States as derivation revenue.

From the N688.785 billion  distributable Value Added Tax VAT revenue, the Federal Government received N68.879 billion, the State Governments received N378.832  billion and the Local Government Councils received N241.075 billion.

In May 2026, Companies income Tax CIT, CGT, SDT, Petroleum Profit Tax PPT, Hydrocarbon Tax HT, Oil and Gas Royalty increased significantly while Import Duty, Value Added Tax VTA, Excise Duty and CET Levies decreased considerably. Reacting to the development, a Public policy analyst and Transport Economist Mr Valentine Okenwa,

harped on developing the right infrastructure that would improve the quality of life of ordinary Nigerians. He warned that “unless project feasibility studies are carried out to ensure improvement on people’s lives, billions shared among various tiers of government could be wasted on infrastructure that does not serve the public effectively”.