About ₦500bn was deducted from the Federation Account Allocation Committee revenue for May 2026 to fund a national security emergency intervention, according to multiple sources familiar with the FAAC proceedings.
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The deduction was reportedly made before the monthly revenue-sharing exercise among the Federal Government, states and local government councils.
One of the sources confirmed the development, saying, “FAAC deducted ₦500bn for national security emergency fund this month.”
Another official said the deduction accounted for a major part of the gap between the total revenue generated and the amount eventually distributed to the three tiers of government.
“That is where the FAAC windfall is going too,” the source said.
The official added that commissioners of finance from the 36 states, 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.
However, an official FAAC allocation document reportedly showed that substantial deductions from federation revenues were disclosed during the May 2026 FAAC meetings.
The document indicated that ₦250bn was set aside for a Military Intervention Fund, while another ₦252bn was allocated as an Infrastructure Development Fund to states. It also showed a ₦450bn deduction to the Non-Oil Excess Revenue Account, bringing the combined value of the three major deductions to ₦952bn.
The revelation came as FAAC announced the distribution of ₦2.3tn to the Federal Government, state governments and the 774 local government councils as revenue allocation for May 2026.
According to a statement issued on Wednesday by the Director of Press and Public Relations in the Office of the Accountant-General of the Federation, Bawa Mokwa, the amount shared represented an increase of ₦43bn from the ₦2.26tn distributed in the previous month.
The allocation marks a 1.9 per cent month-on-month increase and continues the upward trend in federation revenues. The ₦2.257tn shared from April 2026 revenue had exceeded the ₦2.04tn distributed for March revenue by ₦217bn, while the March allocation was ₦150bn higher than the ₦1.89tn shared in February.
The statement said the ₦2.300tn distributable revenue comprised ₦1.611tn in statutory revenue and ₦688.785bn in Value Added Tax revenue.
A communiqué issued after the meeting showed that total gross revenue available in May stood at ₦3.395tn. From this amount, ₦123.546bn was deducted as cost of collection, while ₦971.610bn was set aside for transfers and refunds.
A breakdown of the ₦2.300tn distributable revenue showed that the Federal Government received ₦818.680bn, while state governments received ₦759.141bn.
The 774 local government councils received ₦534.277bn, while oil-producing states shared ₦188.132bn as 13 per cent derivation revenue.
Although the official FAAC communiqué did not provide details of the individual items captured under transfers and refunds, sources said the ₦500bn security deduction formed part of the pre-distribution adjustments made to federation revenue for the month.
The deduction comes amid persistent security challenges across Nigeria, with federal and state governments under pressure to strengthen military, police and intelligence operations.
The country has continued to grapple with insurgency in the North-East, banditry and mass kidnappings in the North-West, farmer-herder clashes in the North-Central, separatist-related violence in the South-East, and crude oil theft and pipeline vandalism in the Niger Delta.
Despite huge annual budgetary allocations to defence and security, attacks on communities, abductions for ransom and assaults on security formations have continued to stretch the nation’s security architecture.
The administration of President Bola Tinubu has repeatedly pledged to prioritise national security, describing it as essential to economic growth and social stability.
Since assuming office in May 2023, the Federal Government has approved increased funding for the armed forces, procured military hardware and intensified intelligence-driven operations against insurgency, banditry and other violent crimes.
Security analysts say the creation of a national security emergency fund, if sustained, could provide additional fiscal support for urgent security interventions as the country battles evolving threats across different regions.
Economists also welcomed the Federal Government’s plan to establish a ₦500bn national security emergency fund but urged authorities to ensure transparent and accountable spending.
In separate interviews, the Chief Executive Officer of Economic Associates, Dr Ayo Teriba, said no Nigerian would oppose increased funding for security, given the obvious funding gaps in troop support, equipment procurement, personnel remuneration, surveillance infrastructure and recruitment of security personnel such as forest guards.
“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 said.
He noted that sourcing the fund from FAAC allocations rather than imposing fresh levies on citizens would likely attract support, but added that Nigerians would expect transparency in the management of the resources.
“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.
Teriba stressed that the success of the initiative would depend on the government’s willingness to be transparent.
“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 added.
He also supported the opposition of the Department of State Services to foreign donations 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,” Teriba said.
Also speaking, a Professor of Economics and Public Policy at the University of Uyo, Prof. Akpan Ekpo, described security as a critical requirement 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 said.
He said a dedicated emergency fund to strengthen security operations and procure modern equipment was a step in the right direction, provided the resources were managed efficiently.
“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 effectiveness of previous security allocations, noting that billions of naira had already been budgeted for security over the years. He warned that without accountability, public confidence in the fund could be undermined.
Meanwhile, the DSS on Thursday urged the House of Representatives to remove provisions allowing international organisations to fund its proposed Security Trust Fund, warning that foreign contributions could expose sensitive intelligence operations to external influence and compromise national security.
The Service made its position known at a public hearing organised by the House Committee on National Security and Intelligence on bills seeking to strengthen the operational capacity of the country’s domestic intelligence agency through dedicated funding, professional training and research development.
Presenting its submission on the bill to establish the Department of State Services Trust Fund, the DSS, represented by Emmanuel Duabry, endorsed the proposed legislation but called for major amendments, including the deletion of provisions permitting grants, donations and endowments from international organisations.
The Service argued that accepting foreign funding for security operations could undermine institutional independence and expose intelligence activities to external scrutiny.
“Section 3(d), which permits grants, donations, and endowments from international organisations, should be expunged,” Duabry said.
“Allowing foreign funding for a security-related Trust Fund raises serious concerns relating to sovereignty, operational confidentiality, and institutional independence. International funding arrangements may impose reporting and disclosure obligations capable of compromising sensitive security operations, including intelligence methods, procurement processes, and deployment strategies.
“There is also a risk that foreign funding may introduce external influence over domestic security priorities, which may not always align with Nigeria’s specific security realities, including insurgency, banditry, and kidnapping.”
The DSS proposed that the Trust Fund should only receive grants, donations and endowments from local organisations.
Despite its reservations, the Service described the proposed legislation as a major step towards strengthening intelligence and security operations through sustainable financing.
According to the DSS, the Fund would provide dedicated resources for intelligence gathering, counterterrorism operations and rapid responses to emerging security threats, while reducing delays associated with conventional budgetary processes.
The agency also proposed changes to the funding structure of the Trust Fund, arguing that the current bill leaves too much discretion to the National Assembly in determining annual allocations.
It said a clearly defined funding formula or fixed percentage contribution would provide greater certainty and stability for long-term security planning.
The DSS also recommended amendments to the composition of the proposed governing board. It argued that the board should include mandatory legal representation and questioned the inclusion of the Nigerian Governors’ Forum, which it described as a voluntary association without statutory backing.
The Service proposed that the Nigerian Bar Association should nominate a representative with expertise in national security and human rights matters.
It also recommended that the Board Secretary should be appointed by the President and must be a serving or retired DSS officer not below the rank of Assistant Director, who is also a legal practitioner with at least 10 years’ post-call experience.
The agency further sought provisions allowing board members to resign through written notice to the President and empowering the President to remove members for misconduct, gross incompetence or inability to perform their duties.
Notwithstanding its recommendations, the DSS urged lawmakers to pass the bill.
The Service also raised concerns over another proposed legislation seeking to establish a Strategic Intelligence Management Institute, arguing that the proposed institute substantially overlaps with the National Institute for Security Studies established under the National Institute for Security Studies (Establishment) Act, 2019.
To avoid duplication, the DSS recommended that the proposed institute be redesigned to focus exclusively on external intelligence operations and international intelligence cooperation in line with the mandate of the National Intelligence Agency.
The Chairman of the House Committee on National Security and Intelligence, Ahmed Satomi, said the three bills under consideration were designed to strengthen the operational effectiveness of the DSS through sustainable funding, professional intelligence training and indigenous technological development.
“These bills are interlinked. One addresses funding, the second addresses professional training and coordination, and the third addresses indigenous capacity and technology. Together, they aim to position our intelligence agencies to better protect Nigerians and Nigeria’s national interest,” he said.
Satomi said the public hearing was convened to obtain expert opinions and stakeholder input before the bills proceed to the next legislative stage.
In his contribution, the Speaker of the House of Representatives, Abbas Tajudeen, represented by House Leader Prof Julius Ihonvbere, described national security as the most critical pillar for Nigeria’s survival and development.
According to him, terrorism, banditry, kidnapping, cybercrime and transnational organised crime require greater investment in intelligence, innovation and institutional capacity.
In a related development, the Deputy Inspectors-General of Police deployed to the six geopolitical zones have relocated to their designated areas and resumed duties as part of efforts to strengthen security operations across the country.
The Force Public Relations Officer, Anthony Placid, confirmed the development on Thursday, saying the senior police officers had returned to their assigned zones and commenced work.
“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,” Placid said.
The redeployment followed a directive by the Inspector-General of Police, Olatunji Disu, who on June 15, 2026, assigned DIGs to the six geopolitical zones to address rising insecurity and improve operational effectiveness.
The initiative is aimed at bringing strategic police leadership closer to the field, enhancing intelligence-led policing, strengthening operational oversight and improving coordination of security responses nationwide.
The Deputy Inspector-General of Police in charge of Information and Communication Technology and Supervising DIG for the South-West Geopolitical Zone, DIG Fayoade Adegoke, has commenced an official tour of duty across the South-West region.
His first stop was Oyo State, where he held a strategic engagement at the Oyo State Police Command Headquarters, Eleyele, Ibadan.
The meeting brought together police officers, stakeholders and community representatives to discuss measures for strengthening security, improving police-community relations and enhancing operational effectiveness across the region.
The deployment of the DIGs is part of ongoing efforts by the Nigeria Police Force to decentralise operational leadership and improve responses to emerging security challenges across the country.
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