Emmanuel Addeh in Abuja
The Federation Account Allocation Committee (FAAC) distributed about N17.07 trillion to the three tiers of government and other statutory beneficiaries in the first half of 2026, with sub-national governments receiving N518 billion in special infrastructure funding in May and June.
An analysis of monthly FAAC disbursement statements published by the Office of the Accountant General of the Federation (OAGF) showed that total gross allocations rose from N2.59 trillion in January to N3.40 trillion in June, reflecting a combination of statutory revenue, augmentations and other inflows.
The figures also showed that N750 billion was channelled through the federation account into two separate security-related funds during the period, comprising N250 billion for a Military Intervention Fund (MIF) in May and N500 billion for a National Security Emergency Fund (NSEF) in June.
The documents, however, did not provide details of the projects, agencies or specific operations to be financed from the infrastructure and security funds, a THISDAY analysis indicated.
In January, FAAC distributed N2.59 trillion from December 2025 revenues, with the federal government receiving N653.50 billion, states N706.47 billion and local governments N513.27 billion. A further N402.60 billion was transferred to the non-oil excess account.
The February distribution increased to N3.04 trillion, supported by a N100 billion non-oil augmentation. The federal government received N577.91 billion, states N794.01 billion and local governments N537.88 billion, while N850.56 billion was transferred to the non-oil excess account.
According to the analysis, March recorded total distributions of N2.23 trillion, comprising N675.09 billion for the federal government, N651.53 billion for states and N456.47 billion for local governments.
In April, total distributions rose to N2.63 trillion, following a N200 billion non-oil augmentation and N68.10 billion from solid minerals revenue. The federal government received N820.37 billion, states N673.43 billion and local governments N481.03 billion.
Besides, the May allocation climbed to N3.185 trillion, supported by a N250 billion augmentation. Of this, the federal government received N787.35 billion, states N772.36 billion and local governments N540.15 billion.
June recorded the highest monthly distribution during the six-month period, with gross allocations reaching N3.395 trillion. The federal government received N818.68 billion, states N759.14 billion and local governments N534.28 billion.
Beyond the regular allocations, the May and June statements showed significant transfers to special funds.
The May statement listed N252 billion under the infrastructure development fund for states, alongside the N250 billion Military Intervention Fund. A further N200 billion was transferred to the non-oil excess revenue account.
In June, another N266 billion was allocated under the infrastructure development fund, bringing the two-month allocation to the fund to N518 billion.
The June statement also listed N500 billion for the national security emergency fund, N50 billion transferred to the Nigeria Sovereign Investment Authority and N100 billion as a tax refund to the Nigeria Revenue Service.
The special security allocations were made against the backdrop of persistent security challenges, including terrorism, banditry, kidnapping and other violent crimes.
However, the OAGF statements did not specify how the funds would be administered or the projects and operations for which they were earmarked. The FAAC statements also highlighted the cost of revenue collection and other statutory deductions from Federation Account revenues.
In May, the Nigeria Revenue Service (NRS) received N76.28 billion as cost of collection, while the Nigerian Upstream Regulatory Commission (NURPC) received N37.48 billion.
In June, the corresponding figures rose to N84.69 billion for the NRS and N38.85 billion for NUPRC. The June statement also included the N100 billion tax refund to the NRS.
Cumulatively, the records supplied showed N4.33 trillion allocated to the federal government, N4.36 trillion to state governments and N3.06 trillion to local governments during the six months, while oil-producing states received N763.73 billion through the 13 per cent derivation fund.
A further N1.85 trillion was transferred to the non-oil excess account. The figures illustrated the extent to which gross revenues flowing through the Federation Account are subject to statutory deductions, refunds and transfers to special funds before and alongside distributions to the three tiers of government.
However, although federation revenue has more than tripled in the last few years, Nigerians continue to complain about the underwhelming impact of the rising earnings both at the federal and state levels.