Multiple senior officials and sources close to the Federation Account Allocation Committee (FAAC) have disclosed that approximately N500bn was deducted from May 2026 revenues prior to the monthly sharing exercise. This deduction was specifically earmarked for a national security emergency intervention fund, and it significantly contributed to the gap between total generated revenues and the final amounts distributed to the three tiers of government. While commissioners of finance from all 36 states were reportedly aware of the adjustment, an official FAAC allocation document also detailed other substantial provisions during the May meetings. These included N250bn for a Military Intervention Fund, N252bn for an Infrastructure Development Fund allocated to states, and N450bn transferred to the Non-Oil Excess Revenue Account, bringing the total of these main deductions to N952bn.

FAAC Disburses N2.3tn to Federal, State, and Local Governments

Despite these heavy deductions, FAAC announced the distribution of N2.3tn among the federal, state, and local governments for May 2026. According to Bawa Mokwa, the Director of Press and Public Relations in the Office of the Auditor-General of the Federation, this represents a 1.9 percent month-on-month increase, continuing a steady upward trajectory in federation revenues. The distributable total comprised N1.611tn in statutory revenue and N688.785bn in Value Added Tax (VAT), drawn from a gross available revenue of N3.395tn. After accounting for N123.546bn in collection costs and N971.610bn for transfers and refunds, the Federal Government received N818.680bn, state governments received N759.141bn, and local government councils received N534.277bn. Additionally, oil-producing states were allocated N188.132bn as part of their 13 percent derivation revenue.

Economic Experts Back Security Funding with Demands for Accountability

The off-budget security deduction comes amid persistent, widespread security challenges, including regional insurgencies, banditry, and pipeline vandalism. Economic experts have generally supported the creation of a dedicated emergency fund, noting that traditional funding gaps for troops, equipment, and recruitment remain glaringly obvious. Dr. Ayo Teriba, Chief Executive Officer of Economic Associates, expressed that drawing from FAAC allocations is preferable to introducing new citizen levies, though he emphasized that public support depends heavily on absolute transparency and efficient management. Similarly, Professor Akpan Ekpo from the University of Law stressed that while security is a foundational requirement for economic growth and foreign investment, the government must guarantee strict accountability to prevent corruption and rebuild public trust, given the massive budgets previously allocated to defense.

DSS Opposes Foreign Financing in Proposed Trust Fund Bill

At a House of Representatives public hearing organized by the Committee on National Security and Intelligence, the Department of State Services (DSS) urged lawmakers to amend its proposed Security Trust Fund Bill by removing provisions that allow for international donations. Represented by Emmanuel Duabry, the DSS argued that foreign financing could compromise national sovereignty, expose sensitive intelligence methods, and allow external interests to dictate domestic security priorities. The agency recommended that the fund rely strictly on domestic organizations and called for a fixed funding formula rather than leaving annual allocations to legislative discretion. Furthermore, the DSS raised concerns over a proposed Strategic Intelligence Management Institute, noting that its functions duplicate those of the existing National Institute for Security Studies, and recommended it be restructured to focus solely on external intelligence.

Committee Chairman Ahmed Satomi and Speaker of the House Abbas Tajudeen, represented by House Leader Professor Julius Ihonvbere, collectively assured stakeholders that public input would be integrated into the final legislation. They noted that modern threats like terrorism, cybercrime, and banditry require substantial investment in institutional capacity and intelligence-driven technology.

Police Leadership Decentralizes as DIGs Relocate to Geopolitical Zones

In a parallel security effort, the Nigeria Police Force confirmed that Deputy Inspectors-General of Police (DIGs) have officially relocated to their newly assigned geopolitical zones. Force Public Relations Officer Anthony Placid stated that the senior officers resumed field duties following a directive from Inspector-General of Police Olatunji Disu aimed at bringing strategic leadership closer to local operations. As part of this decentralization strategy, DIG Fayoade Adegoke, who oversees Information and Communication Technology as well as the South-West zone, has initiated a regional tour starting in Oyo State. The tour focuses on bolstering community relations, improving operational oversight, and creating more rapid responses to localized security threats.