AKINWALE ABOLUWADE
The Federal Government has earmarked about N500bn from the May 2026 Federation Account Allocation Committee (FAAC) revenue to finance a national security emergency intervention amid rising insecurity across the country.
The deduction was reportedly made before the monthly revenue-sharing exercise among the Federal Government, state governments and local government councils, according to senior officials familiar with the FAAC proceedings.
Confirming the development, one source disclosed, “FAAC deducted N500bn for the national security emergency fund this month.”
Another official explained that the deduction accounted for a substantial portion of the difference between the total revenue generated and the amount eventually distributed to the three tiers of government.
“That is where the FAAC windfall is going too,” the source said.
The official further revealed that commissioners of finance from the 36 states, who are members of FAAC, were aware of the deduction.
“The commissioners are not raising concerns about it, which suggests they are fully briefed on the arrangement,” the source added.
However, a FAAC allocation document obtained by The PUNCH on Thursday showed that significant deductions from federation revenues were disclosed during the May 2026 FAAC meeting.
According to the document, N250bn was allocated to a Military Intervention Fund, while another N252bn was designated as an Infrastructure Development Fund for states. An additional N450bn was transferred to the Non-Oil Excess Revenue Account, bringing the total value of the three major deductions to N952bn.
The revelation comes as FAAC announced the distribution of N2.30tn to the Federal Government, the 36 states and the 774 local government councils as revenue allocation for May 2026.
In a statement issued on Wednesday by the Director of Press and Public Relations in the Office of the Auditor-General of the Federation, Bawa Mokwa, FAAC said the N2.30tn shared represented an increase of N43bn from the N2.26tn distributed in April.
The allocation reflects a 1.9 per cent month-on-month increase and continues the upward trend in federation revenues. The N2.257tn shared from April 2026 revenue exceeded the N2.04tn distributed for March by N217bn, while the March allocation was N150bn higher than the N1.89tn shared for February.
According to the statement, the N2.30tn distributable revenue comprised N1.611tn in statutory revenue and N688.785bn from Value Added Tax collections.
A communiqué issued after the FAAC meeting indicated that total gross revenue available in May stood at N3.395tn. From this amount, N123.546bn was deducted as the cost of collection, while N971.610bn was set aside for transfers, interventions and refunds.
A breakdown of the allocation showed that the Federal Government received N818.680bn, state governments received N759.141bn, while the 774 local government councils shared N534.277bn.
Oil-producing states received N188.132bn as 13 per cent derivation revenue.
Suggested headline:
FG Deductions Hit N500bn as Rising Insecurity Triggers Emergency Security Fund.
