“I paid over ₦300,000 VAT alone on electronics” - Nigerian man reacts as FAAC shares ₦2.3 Trillion May revenue

Precious Omolu 11:25 - 18 June 2026

Add Pulse as a preferred source on Google

While the Federation Account Allocation Committee (FAAC) distributed a staggering ₦2.3 trillion for May 2026, everyday citizens are feeling the direct weight of generating that revenue through steep consumer taxes on basic goods

A Nigerian said he paid over ₦300,000 in VAT while ordering electronics as he reacted to FAAC's distribution of ₦2.3 trillion in May 2026 revenue among the Federal Government, states and local governments, with many Nigerians questioning how the funds are being spent.

FAAC distributed ₦2.3 trillion in May 2026 revenue to the Federal Government, states and local governments, up from ₦2.26 trillion in April.
Nigerians reacted online by questioning how the huge allocations are being spent and why many citizens are yet to feel their impact.
One man said he paid more than ₦300,000 in VAT on electronics purchases, highlighting concerns about the tax burden on consumers.

A Nigerian has shared how much he paid in Value Added Tax (VAT) while purchasing electronic appliances after the Federation Account Allocation Committee (FAAC) announced the distribution of ₦2.3 trillion among the Federal Government, states and local governments from May 2026 revenue.

The man, reacting to the allocation figures, said he discovered he had paid more than ₦300,000 in VAT on a single electronics order, as many Nigerians debated the latest FAAC disbursement and questioned how public revenues are being utilised across the country.

FAAC announced that a total of ₦2.3 trillion was shared across the three tiers of government, representing an increase of ₦43 billion from the ₦2.26 trillion allocated in April.

According to the committee's communiqué, the distributable revenue consisted of ₦1.611 trillion from statutory revenue and ₦688.8 billion generated through VAT. Gross revenue for the month stood at ₦3.395 trillion, while ₦123.5 billion was deducted as collection costs and ₦971.6 billion was set aside for transfers, interventions and refunds.

The report showed that statutory revenue increased significantly in May, rising to ₦2.651 trillion from ₦2.378 trillion recorded in April. However, VAT revenue declined from ₦806.6 billion in April to ₦743.7 billion in May.

Under Nigeria's 7.5% Value Added Tax framework, consumers purchasing heavy home appliances are finding themselves paying tens of thousands of naira extra per item just to cover government levies

FAAC stated that collections from Companies Income Tax (CIT), Capital Gains Tax (CGT), Stamp Duties, Petroleum Profit Tax (PPT), Hydrocarbon Tax and Oil and Gas Royalties recorded notable increases during the month. In contrast, earnings from VAT, Import Duty, Excise Duty and CET Levies dropped.

From the ₦2.3 trillion shared, the Federal Government received ₦818.7 billion, while state governments got ₦759.1 billion. Local government councils received ₦534.3 billion, while oil-producing states shared ₦188.1 billion as 13 per cent derivation revenue.

The announcement triggered fresh debates on social media, with many Nigerians questioning how government allocations translate into improvements in citizens' daily lives.

The latest ₦2.3 trillion payout has ignited fresh online debates, with many questioning why massive monthly allocations fail to visibly improve infrastructure, healthcare, or public welfare at the grassroots level

One social media 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, who work for their matter arrest am join, 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, writing:

"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, not only the Federal Government.

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?"

Meanwhile, one particular comment about taxation attracted significant attention.

Financial analysts and online commentators are increasingly urging citizens to hold their local government councils and state governors accountable for their shares of the revenue, rather than focusing solely on the federal tier

The user claimed that VAT charges on imported electronics contributed heavily to the final cost of the products.

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 naira 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 Value Added Tax on most goods and services, with businesses often passing the cost on to consumers. Economists have repeatedly argued that while tax revenues are necessary for funding public services and infrastructure, citizens are more likely to support taxation when they can clearly see the impact of government spending on roads, healthcare, education and other public services.

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.