The Federal Government has raised a N500bn national security emergency fund by deducting the amount from May 2026 Federation Account Allocation Committee (FAAC) revenues before the monthly sharing of funds among the three tiers of government.
Multiple sources familiar with the FAAC proceedings confirmed that the deduction was made as part of efforts to strengthen security operations across Nigeria amid persistent threats from insurgents, bandits, kidnappers and other criminal groups.
Officials disclosed that the deduction contributed significantly to the difference between the total revenue generated and the amount eventually distributed to the Federal Government, states and local government councils. State commissioners of finance, who are members of FAAC, were reportedly aware of the decision.
Documents obtained by the newspaper showed that N250bn was allocated to a Military Intervention Fund, N252bn was set aside as an Infrastructure Development Fund for states, while N450bn was transferred to the Non-Oil Excess Revenue Account. Together, the deductions totalled N952bn.
Despite the deductions, FAAC distributed N2.30tn from May 2026 revenue, up from N2.26tn shared in April. The Federal Government received N818.68bn, states received N759.14bn, local government councils got N534.28bn, while oil-producing states shared N188.13bn as derivation revenue.
The move comes as the administration of Bola Tinubu continues efforts to tackle insecurity across the country, including insurgency in the North-East, banditry in the North-West, violent clashes in the North-Central, separatist unrest in the South-East and oil theft in the Niger Delta.
Economists welcomed the creation of the fund but stressed the importance of transparency and accountability.
Chief Executive Officer of Economic Associates, Ayo Teriba, said security funding gaps remain evident and that Nigerians would support additional spending if the resources are managed properly.
Professor Akpan Ekpo also described security as essential for attracting investment and economic development, while warning that efficient use of the funds would be critical to maintaining public trust.
Meanwhile, the Department of State Services has urged the House of Representatives to remove provisions allowing foreign organisations to contribute to a proposed DSS Trust Fund. The agency argued that foreign funding could expose sensitive intelligence operations to external influence and compromise national security.
The DSS instead recommended that grants and donations should come only from local organisations, while supporting the broader objective of creating sustainable funding mechanisms for intelligence gathering, counter-terrorism operations and emergency security responses.
The report also noted that Deputy Inspectors-General of Police recently deployed to Nigeria’s six geopolitical zones have resumed duties as part of efforts to improve security coordination and operational effectiveness nationwide.
