FAAC disbursements rise to N3.4T in June, but security claims N750B of two-month total
The Federation Account Allocation Committee (FAAC) disbursed N3.18 trillion in May and N3.40 trillion in June 2026—a N210.68 billion increase—according to NBS data released Friday. Total allocations over the two months reached N6.58 trillion. June's share comprised N818.68 billion for the Federal Government, N759.14 billion for states, and N534.28 billion for the 774 local government councils. Oil-producing states received N188.13 billion as 13% derivation allocation (up from N157.25 billion in May).
June's state allocation included N380.31 billion in statutory funds and N378.83 billion from VAT, while local governments got N293.20 billion statutory and N241.07 billion VAT. Significant portions were diverted before distribution: N500 billion went to the National Security Emergency Fund in June, adding to May's N250 billion Military Intervention Fund and N252 billion Infrastructure Development Fund for states. Over May-June, N750 billion flowed to security-related funds and N518 billion to states' Infrastructure Development Fund.
Despite higher gross revenue (N3.18 trillion in April vs. N3.18 trillion distributable in May-June), analysis shows only N12.59 trillion of N18.72 trillion gross FAAC revenue (Jan-Jun 2026) was actually distributed after deductions for savings, interventions, and transfers. States received N4.47 trillion in general allocations during H1 2026, while local governments got N3.13 trillion.
With security claims consuming over 11% of the May-June FAAC total, will state governors prioritize core services like healthcare and education over infrastructure projects, or demand fiscal reforms to reduce deductions before allocations reach local councils?