A Nigerian man has revealed he paid over ₦300,000 in Value Added Tax (VAT) on a single electronics order, as the Federation Account Allocation Committee (FAAC) announced the distribution of ₦2.3 trillion among the federal, state, and local governments from May 2026 revenue. The disclosure has reignited public debate over the tax burden on consumers and the lack of visible impact from government spending.
FAAC distributes ₦2.3 trillion for May
FAAC shared a total of ₦2.3 trillion in May 2026 revenue, up from ₦2.26 trillion in April. The distributable revenue comprised ₦1.611 trillion from statutory revenue and ₦688.8 billion from VAT. Gross revenue for the month stood at ₦3.395 trillion, with ₦123.5 billion deducted as collection costs and ₦971.6 billion set aside for transfers, interventions, and refunds.
Statutory revenue rose significantly to ₦2.651 trillion in May from ₦2.378 trillion in April, but VAT revenue declined from ₦806.6 billion to ₦743.7 billion. Collections from Companies Income Tax, Capital Gains Tax, Stamp Duties, Petroleum Profit Tax, Hydrocarbon Tax, and Oil and Gas Royalties increased, while VAT, Import Duty, Excise Duty, and CET Levies dropped.
How the funds were shared
From the ₦2.3 trillion, the Federal Government received ₦818.7 billion, state governments got ₦759.1 billion, and local government councils received ₦534.3 billion. Oil-producing states shared ₦188.1 billion as 13 per cent derivation revenue.
Public reactions: Tax burden and accountability
The announcement triggered widespread reactions on social media, with many Nigerians questioning why massive monthly allocations fail to translate into improved infrastructure, healthcare, or public welfare. One user wrote: “Where is the impact of that money now? See I'm all in for officials arrest, embarrass them in public and their kids and family… how do you explain those money are not seeing in the lives of Nigerians?”
Another commenter said: “₦2.3 trillion was shared in one month and ordinary Nigerians are still asking where the impact is. At some point, the conversation has to move from revenue allocation to accountability.” A third user expressed frustration: “They really shared it and put it in their personal pocket. We only see the figure but we don't know what they do with it. Sometimes I regret being Nigerian but then again I can't question God.”
Some Nigerians argued that citizens should also demand accountability from state and local governments. One comment read: “Then the question should be, where are the state and local governments keeping their money? Despite the visible work the federal government is doing everyday, everyone keeps calling it out instead of holding their state and local government responsible.” Another added: “What are you grassroot governments doing with allocations?”
VAT burden on consumers
A particular comment about taxation attracted significant attention. The user claimed that VAT charges on imported electronics contributed heavily to the final cost. He wrote: “I received an invoice for supplies of electronics appliances I ordered. One day I said, 'Let me read this paper.' I discovered that each AC I am paying this government ₦22,800 and smart TV of 50 inches ₦25,400. I just said chaiiiiii now the consumer will be the one to feel this burden. I calculated in one purchase and paying 300k plus for VAT alone.”
Nigeria currently imposes a 7.5 per cent VAT on most goods and services, with businesses often passing the cost to consumers. Economists have repeatedly argued that while tax revenues are necessary for funding public services, citizens are more likely to support taxation when they can clearly see the impact on roads, healthcare, education, and other public services.
Conclusion
The latest FAAC allocation continues a trend of strong revenue performance in 2026, driven largely by oil-related taxes and royalties despite weaker VAT and import duty collections. However, the growing tax burden on consumers and the perceived lack of accountability remain pressing concerns for many Nigerians.
