The Federal Government has set aside about N500 billion from the Federation Account Allocation Committee (FAAC) revenue for May 2026 to finance a national security emergency intervention as authorities intensify efforts to tackle Nigeria’s worsening security challenges.
Multiple sources familiar with the development disclosed that the deduction was made before the monthly revenue-sharing exercise among the Federal Government, states and the 774 local government councils.
One source confirmed the move, saying, “FAAC deducted N500bn for national security emergency fund this month.”
Another official explained that the deduction accounted for a significant portion of the difference between the total revenue generated and the amount eventually distributed among the three tiers of government.
“That is where the FAAC windfall is going too,” the source said.
The official also revealed that state commissioners of finance, who are members of FAAC, were aware of the deduction.
“Commissioners are not talking about it, which means they are in the loop,” the official added.
N952bn Set Aside For Strategic Interventions
An official FAAC allocation document showed that several deductions were made from May 2026 revenues before distribution.
The document indicated that:
- N250 billion was allocated to a Military Intervention Fund.
- N252 billion was earmarked as an Infrastructure Development Fund for states.
- N450 billion was transferred to the Non-Oil Excess Revenue Account.
The three deductions amount to N952 billion.
The disclosures emerged as FAAC announced the distribution of N2.3 trillion among the Federal Government, states and local government councils.
According to an official statement, the allocation represents an increase of N43 billion from the N2.26 trillion distributed in April 2026.
The N2.3 trillion distributable revenue comprised N1.611 trillion in statutory revenue and N688.785 billion generated from Value Added Tax (VAT).
Total gross revenue for May stood at N3.395 trillion, with N123.546 billion deducted as collection costs and N971.610 billion set aside for transfers and refunds.
Breakdown Of May 2026 Allocations
- Federal Government: N818.680 billion
- State Governments: N759.141 billion
- Local Government Councils: N534.277 billion
- Oil-Producing States (13% derivation): N188.132 billion
Although the FAAC communiqué did not explicitly itemise the security intervention fund, sources said the N500 billion security allocation formed part of the pre-distribution adjustments.
Mounting Security Challenges Drive Intervention
The development comes amid escalating security concerns across Nigeria.
The country continues to battle multiple threats, including insurgency in the North-East, banditry and mass kidnappings in the North-West, farmer-herder clashes in the North-Central, separatist agitations in the South-East and crude oil theft in the Niger Delta.
Despite increased security spending over the years, attacks on communities, kidnappings and assaults on security personnel have persisted.
President Bola Tinubu’s administration has repeatedly described security as a key pillar for economic growth and national stability.
Since assuming office in May 2023, the government has increased defence spending, acquired military equipment and expanded intelligence-led operations.
Security experts say a dedicated emergency fund could provide additional resources to tackle evolving security threats if managed effectively.
Economists Demand Transparency
Economists have largely welcomed the initiative but insist transparency and accountability will determine its success.
Chief Executive Officer of Economic Associates, Dr Ayo Teriba, said additional funding for security was necessary given existing gaps.
“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,” he said.
Teriba noted that sourcing the funds from FAAC allocations instead of imposing new taxes may make the initiative more acceptable to Nigerians.
“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.
He added that Nigerians would expect full transparency regarding how the funds are utilised.
“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,” he said.
Professor of Economics and Public Policy at the University of Uyo, Prof Akpan Ekpo, also backed the initiative.
“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,” he said.
However, he questioned the effectiveness of previous security allocations and warned that corruption concerns could undermine public trust if accountability mechanisms are weak.
DSS Opposes Foreign Funding For Security Trust Fund
Meanwhile, the Department of State Services (DSS) has urged lawmakers to remove provisions allowing international organisations to finance its proposed Security Trust Fund.
Speaking during a public hearing at the House of Representatives, DSS representative Emmanuel Duabry warned that foreign funding could compromise Nigeria’s sovereignty and intelligence operations.
“Allowing foreign funding for a security-related Trust Fund raises serious concerns relating to sovereignty, operational confidentiality and institutional independence,” he said.
The DSS argued that international funding arrangements could expose sensitive security operations and potentially influence Nigeria’s domestic security priorities.
Instead, the agency proposed that only local organisations should be permitted to contribute to the Trust Fund.
Police DIGs Relocate To Geopolitical Zones
As part of broader security reforms, Deputy Inspectors-General of Police assigned to Nigeria’s six geopolitical zones have resumed duties in their designated locations.
Force Public Relations Officer Anthony Placid confirmed that the redeployment became effective last week.
“Since last Friday, all the DIGs have been redeployed to their political zones. All these DIGs are back to their bases and have resumed work,” he said.
The initiative is aimed at strengthening intelligence gathering, decentralising operational leadership and improving responses to emerging security threats nationwide.
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