The distributable revenue was drawn from a gross government revenue of N13.76 trillion for the five-month period, which itself grew by 4.32% year-on-year. This revenue growth has been attributed to stronger Value Added Tax collections, higher receipts from oil-related taxes, and intensified efforts by the national revenue service to meet its annual target.
A breakdown of the N10.45 trillion allocation shows the Federal Government received the largest share of N3.72 trillion. State governments collectively received N3.56 trillion, while Local Government Areas were allocated N2.51 trillion. Additionally, the 13 oil-producing states shared N673.17 billion as derivation revenue.
Monthly data indicates a generally upward trend in shared revenue throughout the period. The amount rose from N1.96 trillion in January to N2.30 trillion in May 2026. When compared to the same months in 2025, each month in 2026 recorded double-digit percentage increases, with May showing the highest year-on-year growth of 38.55%.
Despite this substantial increase in government revenue, organized labour and private sector observers have expressed strong criticism. They argue that the rising allocations have not translated into tangible improvements in the living conditions of citizens. Key concerns highlighted include the continued deterioration of public infrastructure, escalating insecurity, and the rising cost of transportation, housing, and food. Critics contend that the failure to channel these resources effectively is a primary reason why the populace does not feel any positive impact from the increased government income.
The revenue sharing occurs under a revised VAT allocation formula, which reduced the federal share and increased the share for states. However, revenue generation has still fallen short of government targets for the year. In response, the revenue service has warned that it will enforce stricter compliance, including the potential deduction of unremitted taxes directly from the allocations of government ministries, departments, and agencies.
