The Federal Government has set aside about N500bn from the Federation Account Allocation Committee (FAAC) revenue for May 2026 as part of a national security emergency intervention, according to multiple sources familiar with the development.
The deduction was reportedly made before the monthly revenue-sharing exercise between the Federal Government, states and local government councils, raising fresh discussions about funding priorities amid Nigeria’s escalating security challenges.
Senior officials who attended the FAAC proceedings confirmed that the deduction formed part of pre-distribution adjustments to federation revenues for the month. One official said, “FAAC deducted N500bn for national security emergency fund this month,” while another noted that it accounted for a significant portion of the gap between gross revenue and distributable funds.
According to sources, state finance commissioners were aware of the arrangement, with one official stating that “commissioners are not talking about it, which means they are in the loop.”
An FAAC allocation document reportedly reviewed by The PUNCH showed that in addition to the N500bn security intervention, N250bn was allocated to a Military Intervention Fund, while N252bn was set aside for an Infrastructure Development Fund for states. A further N450bn was transferred to the Non-Oil Excess Revenue Account, bringing total deductions to N952bn.
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Despite these deductions, FAAC still distributed N2.3tn for May 2026 revenue, marking a 1.9 per cent increase from the previous month. Of this, the Federal Government received N818.68bn, states got N759.14bn, and local government councils shared N534.28bn. Oil-producing states received N188.13bn as 13 per cent derivation revenue.
The latest allocations were drawn from a gross revenue of N3.395tn, with N123.55bn deducted for collection costs and N971.61bn set aside for transfers and refunds.
The move comes against the backdrop of Nigeria’s persistent security crises, including insurgency in the North-East, banditry and kidnappings in the North-West, farmer-herder clashes in the North-Central, separatist violence in the South-East, and oil theft in the Niger Delta.
Officials said the administration of President Bola Tinubu has continued to prioritise defence spending, procurement of military hardware, and intelligence-led operations since taking office in May 2023.
Economists have largely welcomed the creation of a dedicated security intervention fund but stressed the need for transparency and accountability in its management. The Chief Executive Officer of Economic Associates, Dr Ayo Teriba, said increased spending on security was necessary, but insisted Nigerians must be assured of proper oversight.
Professor Akpan Ekpo of the University of Uyo also described the initiative as essential for economic stability, noting that insecurity continues to deter investment and development across the country.
However, analysts have cautioned that repeated allocations to security without measurable improvements could weaken public trust in fiscal management.
Meanwhile, the Department of State Services (DSS) has urged lawmakers to remove provisions allowing foreign funding in a proposed Security Trust Fund, warning that external contributions could compromise sensitive intelligence operations and national sovereignty.
The DSS argued during a House of Representatives public hearing that funding for intelligence operations should remain strictly domestic, citing risks of external influence and disclosure obligations that could endanger national security operations.
Despite its concerns, the agency backed the proposed legislation, which aims to create a dedicated funding mechanism for intelligence gathering, counterterrorism operations and rapid response to security threats.
Lawmakers said the proposed reforms, including the Security Trust Fund and related intelligence training legislation, are designed to strengthen Nigeria’s security architecture through improved funding, capacity building and indigenous technological development.
Speaker of the House of Representatives, Abbas Tajudeen, said national security remains central to Nigeria’s survival and economic progress, stressing the importance of stakeholder input in shaping effective legislation.
As debates continue, the creation of the N500bn security emergency fund signals a significant shift in Nigeria’s fiscal priorities, reflecting growing pressure on government institutions to respond decisively to the country’s complex and evolving security landscape.
