The Federation Account Allocation Committee disbursed about N500bn to the federal government from the revenue for May 2026 to fund a national security emergency intervention, according to The PUNCH and multiple sources from FAAC, ABNTV reports.
The deduction was made before the monthly revenue sharing exercise among the federal government, states, and local government councils, according to senior officials privy to the FAAC proceedings.
Confirming the development, one of the sources said, “FAAC deducted N500bn for the national security emergency fund this month.”
Another official added that the deduction accounted for a significant portion of the gap 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.
He further disclosed that commissioners of finance from the 36 states, who are members of the FAAC, were aware of the deduction.
“Commissioners are not talking about it, which means they are in the loop,” the official added.
However, an official FAAC allocation document obtained by The PUNCH on Thursday showed that substantial deductions from federation revenues were disclosed during the May 2026 FAAC meetings.
The document indicated that N250bn was set aside for a military intervention fund, while another N252bn was allocated as an infrastructure development fund to states.
It also showed an N450bn deduction to the Non-Oil Excess Revenue Account, bringing the combined value of the three major deductions to N952bn.
The revelation comes as the Federation Account Allocation Committee announced the distribution of N2.3tn to the Federal Government, state governments and the 774 local government councils as revenue allocation for May 2026.
According to 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, the Federation Account Allocation Committee shared N2.30tn among the Federal Government, states and local government councils from May 2026 revenue, representing an increase of N43bn from the N2.26tn distributed in the previous month.
The allocation marks 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 had itself exceeded the N2.04tn distributed for March revenue by N217bn, while the March allocation was N150bn higher than the N1.89tn shared in February.
The statement said the N2.300tn distributable revenue comprised N1.611tn in statutory revenue and N688.785bn in Value Added Tax revenue.
