ENUGU, Niger (VOICE OF NAIJA)- The Federal Government has earmarked about N500bn from the Federation Account Allocation Committee revenue for May 2026 to finance a national security emergency intervention fund aimed at tackling the country’s growing security challenges.
Multiple sources familiar with the development told Punch that the deduction was made before the monthly revenue-sharing exercise among the Federal Government, the 36 states and the 774 local government councils.
Confirming the development, one of the sources said, “FAAC deducted N500 billion for national security emergency fund this month.”
Another official explained that the deduction accounted for a substantial part of the difference between the total revenue generated and the amount eventually shared among the three tiers of government.
“That is where the FAAC windfall is going too,” the source stated.
The official further disclosed that state commissioners of finance, who are members of FAAC, were fully aware of the deduction.
“Commissioners are not talking about it, which means they are in the loop,” the official added.
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However, a FAAC allocation document obtained by on Thursday showed that significant deductions from federation revenues were formally disclosed during the May 2026 FAAC meeting.
According to the document, N250 billion was allocated to a Military Intervention Fund, while another N252 billion was designated as an Infrastructure Development Fund for states.
The document also indicated that N450 billion was deducted for the Non-Oil Excess Revenue Account, bringing the combined value of the three major deductions to N952 billion.
The revelation emerged as FAAC announced the distribution of N2.3 trillion among the Federal Government, state governments and local government councils as revenue allocation for May 2026.
In a statement issued on Wednesday by the Director of Press and Public Relations in the Office of the Auditor-General of the Federation, Bawa Mokwa, the committee disclosed that N2.30 trillion was shared from May revenue, representing an increase of N43 billion compared to the N2.26 trillion distributed in April.
The allocation reflects a 1.9 per cent month-on-month increase and continues the steady rise in federation revenues.
The N2.257 trillion shared from April revenue exceeded the N2.04 trillion distributed for March by N217 billion , while March’s allocation was N150 billion higher than the N1.89 trillion shared in February.
According to the statement, the distributable revenue comprised N1.611 trillion in statutory revenue and N688.785 billion generated from Value Added Tax.
A communiqué issued after the meeting revealed that total gross revenue available in May stood at N3.395 trillion. From this amount, N123.546 billion was deducted as the cost of collection, while N971.610 billion was earmarked for transfers and refunds.
A breakdown of the distributable revenue showed that the Federal Government received N818.680bn, states received N759.141 billion, while the 774 local government councils got N534.277 billion.
Oil-producing states also shared N188.132 billion as 13 per cent derivation revenue.
Although the FAAC communiqué did not specifically identify the items captured under transfers and refunds, sources maintained that the N500 billion security allocation formed part of the pre-distribution adjustments.
The security fund comes amid persistent insecurity across Nigeria and increasing pressure on governments at all levels to strengthen military and intelligence operations.
The country continues to contend with insurgency in the North-East, banditry and mass kidnappings in the North-West, farmer-herder conflicts in the North-Central, separatist agitations in the South-East, and oil theft and pipeline vandalism in the Niger Delta.
Despite billions of naira allocated annually to defence and security, attacks on communities, abductions for ransom and assaults on security formations have continued to challenge the nation’s security architecture.
Since assuming office in May 2023, President Bola Tinubu’s administration has consistently prioritised national security, approving increased funding for the armed forces, procuring military hardware and intensifying intelligence-led operations against insurgents, bandits and other criminal elements.
Security experts believe a dedicated national security emergency fund could provide additional resources for urgent interventions as threats continue to evolve across the country.
Economists have welcomed the proposed N500 billion national security emergency fund but stressed the need for transparency, accountability and efficient utilisation of the resources.
Speaking in separate interviews with Punch, the Chief Executive Officer of Economic Associates, Dr. Ayo Teriba, said Nigerians generally recognised the need for increased security funding.
“Everybody agreed that not enough is being done on security, not enough is being spent on security, and the funding gaps on security are obvious,” Teriba stated.
He noted that the country needed additional resources for troop welfare, procurement of equipment, surveillance infrastructure and recruitment of personnel, including forest guards.
Teriba argued that sourcing the money from FAAC allocations rather than imposing new taxes on citizens would likely enjoy public support.
“If the government wants to set aside a security fund, nobody will be opposed to it. They are saying they will take it from FAAC before sharing the money. If they want to sacrifice money that they need for security, that is the only way,” he said.
However, he emphasised that transparency would determine public acceptance of the initiative.
“It is up to them to reassure Nigerians that this time they mean well and that they can be transparent about what they want to use this funding for,” Teriba added.
He also supported the opposition of the Department of State Services to foreign contributions into the proposed security trust fund.
“I am happy that the DSS is saying no foreign funding because some of the insurgents are being funded by some foreign interests. Some foreign countries might be complicit, and you shouldn’t take funding from such,” he said.
Similarly, a Professor of Economics and Public Policy at the University of Uyo, Prof. Akpan Ekpo, described security as indispensable for economic growth and investment.
“Security is very crucial. Without security, all the investments coming in will not work. With security, you can develop a place. Without security, you can’t,” Ekpo stated.
He described the emergency fund as a positive step if managed effectively.
“If you have an emergency fund to boost security, to get modern equipment and fight insurgency and terrorism, it is a step in the right direction, provided the money is used efficiently, and there is transparency,” he said.
Ekpo, however, questioned the impact of previous security allocations, warning that failure to ensure accountability could erode public confidence.
Meanwhile, the Department of State Services has urged the House of Representatives to remove provisions permitting international organisations to contribute to the proposed DSS Trust Fund.
The Service raised the concern during a public hearing organised by the House Committee on National Security and Intelligence on bills aimed at improving funding, training and research capacity for the intelligence agency.
Represented by Emmanuel Duabry, the DSS endorsed the bill establishing the Trust Fund but proposed extensive amendments, including the removal of provisions allowing grants, donations and endowments from international organisations.