The Federal Government has reportedly deducted N500 billion from the May 2026 Federation Account Allocation Committee (FAAC) revenue to fund an emergency national security intervention.
According to a report by The PUNCH, the deduction was made before the monthly sharing of federation revenue among the Federal Government, the 36 states and the 774 Local Government Councils.
Sources familiar with the FAAC proceedings said the security fund was created to support urgent interventions and strengthen security operations nationwide.
The N500 billion deduction reportedly accounted for a significant portion of the difference between the total revenue generated and the amount eventually distributed to the three tiers of government.
Finance commissioners from the 36 states, who are members of FAAC, were said to have been aware of the deduction.
An official FAAC allocation document obtained by The PUNCH on Thursday showed that other major deductions were also made from federation revenue during the May 2026 meeting.
The document revealed that N250 billion was allocated to a Military Intervention Fund, while N252 billion was earmarked as an Infrastructure Development Fund for states.
Another N450 billion was transferred to the Non-Oil Excess Revenue Account, bringing the total value of the three major deductions to N952 billion.
NPO reports that this development follows the announcement by FAAC that N2.3 trillion was shared as May 2026 revenue allocation among the Federal Government, state governments and Local Government Councils.
A statement by Bawa Mokwa, Director of Press and Public Relations at the Office of the Auditor-General of the Federation, said the N2.3 trillion allocation increased from the N2.26 trillion shared in the previous month.
The allocation breakdown showed that the Federal Government received N818.680 billion, while state governments received N759.141 billion.
Local Government Councils received N534.277 billion, while oil-producing states received N188.132 billion.
The deduction comes amid continuous security challenges, including banditry, kidnapping, terrorism and violent crimes across several regions.