FG Allocates ₦500 Billion From May FAAC Revenue To Emergency Security Fund

According to Ireporter Online, about ₦500 billion was deducted from the May 2026 Federation Account Allocation Committee (FAAC) revenue to finance a national security emergency intervention, according to multiple senior officials familiar with the proceedings.

Sources disclosed that the deduction was made prior to the monthly disbursement of revenues to the Federal Government, state governments, and the 774 local government councils. One official confirmed that ₦500 billion was specifically set aside under a national security emergency arrangement during the month’s allocation cycle.

Another source explained that the deduction accounted for a significant portion of the gap between gross revenue generated and the final distributable amount. The official further noted that state finance commissioners, who are members of FAAC, were fully aware of the adjustment, suggesting broad institutional knowledge of the transaction.

Internal FAAC documents reportedly indicated that additional substantial deductions were also made during the May 2026 meeting. The records showed that ₦250 billion was earmarked for a Military Intervention Fund, while ₦252 billion was allocated to an Infrastructure Development Fund for states. In addition, ₦450 billion was moved into the Non-Oil Excess Revenue Account, bringing total deductions across these categories to approximately ₦952 billion.

Despite these adjustments, FAAC announced a total distributable revenue of ₦2.3 trillion for May 2026, representing an increase of ₦43 billion compared to the ₦2.26 trillion shared in April. The Office of the Auditor-General of the Federation confirmed in an official statement that the figure reflected a 1.9 percent month-on-month growth in federation revenue.

The breakdown of the ₦2.3 trillion showed that ₦1.611 trillion came from statutory revenue, while ₦688.785 billion was generated from Value Added Tax. From the total gross revenue of ₦3.395 trillion, ₦123.546 billion was deducted as cost of collection, and ₦971.610 billion was allocated to transfers and refunds.

Further distribution showed that the Federal Government received ₦818.680 billion, states got ₦759.141 billion, and local government councils received ₦534.277 billion. Oil-producing states also received ₦188.132 billion as 13 percent derivation revenue.

Although the official FAAC communiqué did not itemize the components of transfers and refunds, informed sources indicated that the ₦500 billion security intervention formed part of the broader pre-distribution deductions from federation revenue.

The development comes amid sustained security challenges across the country, including insurgency in the North-East, banditry and kidnappings in the North-West, communal clashes in the North-Central, separatist tensions in the South-East, and oil theft in the Niger Delta. Authorities continue to increase spending on defence and intelligence operations in response to the evolving threats.