The Federation Account Allocation Committee (FAAC) has reportedly deducted about ₦500 billion from the May 2026 federation revenue to fund a national security emergency intervention, according to multiple senior officials familiar with the proceedings.
Sources said the deduction was made before the monthly revenue was shared among the Federal Government, 36 state governments and 774 local government councils, raising concerns over significant pre-distribution adjustments to national earnings.
An official linked to the process disclosed that “FAAC deducted ₦500 billion for the national security emergency fund this month,” noting that the adjustment accounted for a substantial gap between gross revenue and distributable funds.
Another source added that commissioners of finance from all 36 states were aware of the deduction, suggesting it had full administrative backing within the federation account framework.
An FAAC allocation document obtained by Punch indicated that several major deductions were made during the May meeting of the Federation Account Allocation Committee. These included ₦250 billion for a Military Intervention Fund, ₦252 billion for an Infrastructure Development Fund for states, and ₦450 billion transferred to the Non-Oil Excess Revenue Account—bringing total deductions to about ₦952 billion.
Despite these deductions, FAAC announced a total distribution of ₦2.3 trillion to the three tiers of government for May 2026, representing a modest increase of ₦43 billion compared to the previous month.
According to a statement from the Office of the Auditor-General of the Federation, the distributable revenue comprised ₦1.611 trillion in statutory revenue and ₦688.785 billion from Value Added Tax (VAT). Gross revenue for the month stood at ₦3.395 trillion.
After deductions for cost of collection and transfers, 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 per cent derivation revenue.
Although the official FAAC communiqué did not detail the specific components of the transfers and refunds, sources insisted that the ₦500 billion security intervention fund formed part of the adjustments.
The development comes amid sustained security challenges across Nigeria, including insurgency in the North-East, banditry in the North-West, kidnappings, communal violence, separatist agitation in the South-East, and oil theft in the Niger Delta.
Security spending has remained a major policy focus under the administration of President Bola Tinubu, which has consistently increased defence allocations and approved procurement of military equipment in response to rising insecurity.
The FAAC figures were reported by Punch, a major Nigerian news outlet, amid growing public scrutiny of how federation revenues are allocated and the scale of security-related expenditures.
