FG Removes ₦500 Billion From May FAAC Revenue For Emergency Security Fund

About ₦500 billion was deducted from the May 2026 revenue of the Federation Account Allocation Committee (FAAC) to fund a national security emergency intervention, sources confirmed to Punch.

Multiple senior officials familiar with the FAAC proceedings confirmed that the deduction was made before the monthly revenue sharing among the Federal Government, states and the 774 local government councils.

One of the sources said, “FAAC deducted ₦500 billion for the national security emergency fund this month.”

Another official said the deduction explained a major part of the difference between the gross revenue generated and the amount eventually shared.

“That is where the FAAC windfall is going too,” the source said.

The official added that commissioners of finance from the 36 states, who are members of FAAC, were aware of the deduction.

“Commissioners are not talking about it, which means they are in the loop,” the source added.

Documents Show Major Deductions

An official FAAC allocation document obtained by Punch on Thursday showed that substantial deductions were made from federation revenues during the May 2026 FAAC meeting.

According to the document, ₦250 billion was set aside for a Military Intervention Fund, while ₦252 billion was allocated as an Infrastructure Development Fund to states.

It also showed that ₦450 billion was deducted into the Non-Oil Excess Revenue Account, bringing the combined value of the three major deductions to ₦952 billion.

The revelation came as FAAC announced the distribution of ₦2.3tn to the Federal Government, states and local government councils as revenue allocation for May 2026.

In a statement issued on Wednesday by the Director of Press and Public Relations in the Office of the Auditor-General of the Federation, Bawa Mokwa, FAAC said the amount represented an increase of ₦43 billion from the ₦2.26 trillion shared in the previous month.

The May allocation represents a 1.9 per cent month-on-month increase and continues the recent rise in federation revenues.

The statement said the ₦2.300 trillion distributable revenue comprised ₦1.611 trillion statutory revenue and ₦688.785 billion Value Added Tax revenue.

A communiqué issued after the meeting showed that total gross revenue available in May stood at ₦3.395 trillion.

From the amount, ₦123.546 billion was deducted as cost of collection, while ₦971.610 billion was set aside for transfers and refunds.

A breakdown showed that the Federal Government received ₦818.680 billion, while state governments got ₦759.141 billion.

The 774 local government councils received ₦534.277 billion, while oil-producing states shared ₦188.132 billion as 13 per cent derivation revenue.

Although the official FAAC communiqué did not disclose the specific items under transfers and refunds, sources said the N500bn security deduction formed part of the pre-distribution adjustments made to the federation revenue for the month.

Security Pressure Mounts

The deduction comes amid persistent insecurity across the country and rising pressure on federal and state governments to strengthen military and intelligence operations.

Nigeria has continued to battle insurgency in the North-East, banditry and mass kidnappings in the North-West, farmer-herder clashes in the North-Central, separatist agitation in the South-East, and crude oil theft and pipeline vandalism in the Niger Delta.

Despite huge annual budgetary allocations to defence and security, attacks on communities, abductions for ransom and assaults on security formations have continued to stretch the country’s security architecture.

President Bola Tinubu’s administration has repeatedly described national security as a priority and a condition for economic growth and social stability.

Since assuming office in May 2023, the Federal Government has increased funding for the armed forces, approved the procurement of military hardware and intensified intelligence-led operations against violent crimes.