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The Federation Account Allocation Committee (FAAC) has disbursed N1.578 trillion to the Federal, State and local governments as revenue generated in March 2025.
This was confirmed at the April 2025 FAAC meeting in Abuja.
This is the second consecutive drop in the allocations to the three tiers of government.
The total distributable revenue comprised N931.325 billion from statutory sources, N593.750 billion from Value Added Tax (VAT), N24.971 billion from the Electronic Money Transfer Levy (EMTL), and N28.711 billion from Exchange Difference revenue.
According to the official communique after the meeting on Tuesday, gross revenue available for March stood at N2.411 trillion.
From this, deductions for cost of collection amounted to N85.376 billion, while transfers, interventions, and refunds consumed N747.180 billion.
Despite the lower net revenue available for distribution, the March statutory revenue of N1.718 trillion showed an increase of N65.422 billion over the N1.653 trillion received in February.
However, revenue from VAT dropped to N637.618 billion in March from N654.456 billion in February — a decrease of N16.838 billion.
From the total distributable sum of N1.578 trillion, the federal government received N528.696 billion. State governments collectively received N530.448 billion, while local governments received N387.002 billion. Additionally, N132.611 billion — representing 13 percent of mineral revenue — was allocated to oil-producing states as derivation revenue.
Breakdown of the N931.325 billion statutory revenue shows that the federal government took N422.485 billion, the states N214.290 billion, and local councils N165.209 billion. Oil-producing states received N129.341 billion from this component as derivation revenue.
From the VAT pool of N593.750 billion, the federal government received N89.063 billion. States got N296.875 billion and local governments received N207.813 billion.
For the EMTL revenue of N24.971 billion, the federal government received N3.746 billion, states N12.485 billion, and local governments N8.740 billion.
In the case of Exchange Difference revenue of N28.711 billion, the federal government received N13.402 billion, states N6.798 billion, and local governments N5.241 billion. A further N3.270 billion from this revenue was distributed as 13 percent derivation to oil-producing states.
A deeper look into the revenue trends shows that while Petroleum Profit Tax (PPT) and Companies Income Tax (CIT) increased significantly during the month under review, several other key sources witnessed declines. These include Oil and Gas Royalty, EMTL, VAT, Excise Duty, Import Duty, and Common External Tariff (CET) Levies.
