The Federal Government has reportedly removed N500 billion from the Federation Account Allocation Committee (FAAC) revenue for May 2026 to finance urgent national security operations amid worsening insecurity across the country.
The deduction was made before the monthly revenue allocation to the Federal Government, states and local government councils, according to officials familiar with the FAAC meeting.
Sources with knowledge of the development disclosed that the fund was earmarked for emergency security intervention as authorities intensify efforts to tackle rising attacks by bandits, insurgents and other criminal groups across several parts of Nigeria.
One source familiar with the matter said, “FAAC deducted N500bn for national security emergency fund this month.”
Another insider explained that the deduction significantly affected the total amount available for sharing among the three tiers of government.
“That is where the FAAC windfall is going too,” the source stated.
Further findings indicate that commissioners of finance from the 36 states, who are members of the allocation committee, were aware of the deduction.
According to another official, “Commissioners are not talking about it, which means they are in the loop.”
Documents from the FAAC proceedings also revealed several major deductions from the federation revenue before distribution.
A breakdown showed that N250 billion was reserved for a Military Intervention Fund, while N252 billion was allocated as an Infrastructure Development Fund for states.
In addition, another N450 billion was moved to the Non-Oil Excess Revenue Account.
Combined, these deductions amounted to N952 billion.
Despite these deductions, FAAC distributed N2.3 trillion as revenue allocation for May 2026 to the Federal Government, state governments and the 774 local government councils.
The total allocation represented an increase of N43 billion compared to the N2.26 trillion shared in April.
Available figures show that distributable revenue for May consisted of N1.611 trillion from statutory revenue and N688.785 billion from Value Added Tax.
From the total allocation, the Federal Government received N818.680 billion. State governments shared N759.141 billion.
The 774 local government councils received N534.277 billion. Oil-producing states also received N188.132 billion as 13 per cent derivation revenue.
Meanwhile, FAAC disclosed that total gross revenue available in May stood at N3.395 trillion.
Before distribution, N123.546 billion was deducted as cost of collection, while N971.610 billion was removed for transfers and refunds.
Although the official FAAC communiqué did not clearly list all items under transfers and refunds, insiders say the N500 billion security intervention formed a major part of those deductions.