The Federal Government reportedly set aside about ₦500 billion from the Federation Account Allocation Committee (FAAC) revenue for May 2026 to support urgent national security operations before the remaining funds were shared among the Federal Government, state governments, and local government councils.
According to several officials familiar with the FAAC meeting, the money was removed from the federation revenue pool as part of a special security intervention fund. One source explained that approximately ₦500 billion was deducted specifically for a national security emergency fund before the monthly revenue allocation was distributed.
Another official stated that this deduction was one of the major reasons there was a noticeable difference between the total amount of revenue generated in May and the amount that was eventually shared among the three levels of government. The official also suggested that state finance commissioners were aware of the decision because they participated in the FAAC meetings and did not raise any objections.
Documents obtained from the FAAC proceedings showed that several large deductions were made from the federation’s revenue before distribution. Among these deductions, ₦250 billion was allocated to a Military Intervention Fund, while ₦252 billion was earmarked as an Infrastructure Development Fund for states. In addition, ₦450 billion was transferred to the Non-Oil Excess Revenue Account. Together, these deductions amounted to ₦952 billion.
Despite these deductions, FAAC announced that ₦2.3 trillion was distributed among the Federal Government, the 36 state governments, and the 774 local government councils as revenue for May 2026. This represented an increase of ₦43 billion compared to the ₦2.26 trillion distributed in April 2026.
The increase continues a trend of rising revenue allocations. The amount shared from April revenue was already higher than the March allocation, and the March allocation was itself larger than the amount distributed in February. This indicates a steady growth in federation revenues over recent months.
According to a statement from the Office of the Auditor-General of the Federation, the distributable revenue consisted of ₦1.611 trillion in statutory revenue and ₦688.8 billion generated from Value Added Tax (VAT).
The total revenue available for May 2026 stood at ₦3.395 trillion. Before the distribution took place, ₦123.5 billion was deducted as collection costs, while ₦971.6 billion was reserved for transfers, savings, and refunds.
Out of the final ₦2.3 trillion shared:
- The Federal Government received ₦818.7 billion.
- The 36 state governments received ₦759.1 billion.
- The 774 local government councils received ₦534.3 billion.
- Oil-producing states received ₦188.1 billion as 13 percent derivation revenue.
Although the official FAAC communiqué did not specifically mention the ₦500 billion security deduction, insiders said it was included within the broader category of transfers and refunds that were removed before the revenue sharing process.
The decision comes at a time when Nigeria continues to face serious security challenges across different regions of the country. These include insurgency in the North-East, bandit attacks and mass kidnappings in the North-West, violent farmer-herder conflicts in the North-Central region, separatist unrest in the South-East, and oil theft and pipeline vandalism in the Niger Delta.
Despite the large sums spent on defence and security over the years, attacks on communities, kidnappings for ransom, and assaults on security personnel have continued. As a result, there have been increasing calls for stronger security measures and better funding for military and intelligence operations.
The administration of President Bola Tinubu has repeatedly emphasized that security is essential for economic growth, investment, and social stability. Since taking office in 2023, the government has increased spending on the armed forces, acquired additional military equipment, and expanded intelligence-led operations against criminal groups and insurgents.
Many economists have welcomed the creation of the proposed security emergency fund. They argue that Nigeria needs more resources for military operations, intelligence gathering, surveillance systems, modern equipment, and the recruitment of additional security personnel.
Economist Ayo Teriba, Chief Executive Officer of Economic Associates, stated that most Nigerians agree that security funding remains insufficient. He noted that no one is likely to oppose additional funding for security, especially when the money is being sourced from existing government revenues rather than through new taxes or levies on citizens.
However, he stressed that transparency would be critical. According to him, Nigerians would want clear explanations of how the money is spent and evidence that it is being used effectively to improve security conditions.
Teriba also argued that the funds could help recruit more police officers, military personnel, and forest guards to strengthen security nationwide. He supported the position of the Department of State Services (DSS), which opposes allowing foreign organizations to contribute money to the proposed security fund.
Another economist, Akpan Ekpo, described security as one of the most important requirements for economic development. He explained that investors are unlikely to commit resources to areas where security cannot be guaranteed.
Ekpo said that creating a dedicated emergency fund for security operations and modern equipment is a positive step. However, he warned that previous security budgets have consumed billions of naira with limited visible results, making accountability and proper oversight essential.
Meanwhile, the Department of State Services> (DSS) has urged lawmakers to remove provisions that would allow foreign organizations to finance its proposed Security Trust Fund. The agency warned that accepting foreign funding could create risks to national sovereignty, operational secrecy, and institutional independence.
The DSS argued that international donors often require reporting and disclosure obligations that could expose sensitive information about intelligence operations, procurement activities, and security strategies. The agency also expressed concern that foreign contributors might attempt to influence Nigeria’s domestic security priorities.
As a result, the DSS proposed that only local organizations should be allowed to make donations or contributions to the trust fund.
The agency nevertheless strongly supports the establishment of the fund, saying it would provide stable financing for intelligence gathering, counterterrorism efforts, emergency responses, personnel training, and the acquisition of modern security equipment. It believes the fund would allow security agencies to respond more quickly during crises such as terrorist attacks, civil unrest, and other emergencies.
The DSS also recommended changes to the management structure of the proposed trust fund. It suggested clearer rules regarding annual funding allocations, board membership, legal representation, and procedures for appointing and removing board members.
At the same time, the agency expressed concerns about a separate bill proposing the creation of a Strategic Intelligence Management Institute. According to the DSS, the proposed institute would duplicate the responsibilities already assigned to the National Institute for Security Studies. The agency recommended restructuring the new institution so that it focuses exclusively on foreign intelligence and international intelligence cooperation.
During a public hearing on the proposed legislation, Ahmed Satomi explained that the various bills are intended to improve security through sustainable funding, professional training, and indigenous technological development.
Similarly, Abbas Tajudeen described security as the foundation of Nigeria’s survival and development. He noted that challenges such as terrorism, kidnapping, cybercrime, and organized crime require greater investment in intelligence and institutional capacity.
In a related development, the Nigeria Police Force has redeployed Deputy Inspectors-General of Police to the country’s six geopolitical zones. The move is intended to strengthen operational leadership, improve intelligence gathering, and enhance responses to security threats across the country.
Police spokesperson Anthony Placid confirmed that the officers have resumed duties in their assigned regions. The deployment follows directives from Olatunji Disu, who aims to bring senior police leadership closer to local security challenges and improve coordination of security operations nationwide.
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