The Federation Account Allocation Committee (FAAC) has distributed a total of N2.04 trillion to the three tiers of government for March 2026, marking an increase of N150 billion compared to the N1.89 trillion shared in February.
This was disclosed in a statement released by the Office of the Accountant General of the Federation and signed by its Director of Press and Public Relations, Bawa Mokwa, following the FAAC meeting held in Abuja.
According to the statement, the total revenue shared stood at N2.036 trillion, which was allocated among the Federal Government, state governments, and local government councils.
A breakdown of the distributable revenue shows that N1.32 trillion came from statutory revenue, N515.39 billion was generated from Value Added Tax (VAT), while N200 billion was added as augmentation.
From the total allocation, the Federal Government received N789.16 billion, states were allocated N657.60 billion, and local government councils got N468.83 billion. In addition, oil-producing states received N120.76 billion as derivation revenue.
The committee also revealed that total gross revenue for March stood at N2.364 trillion. From this amount, N81.08 billion was deducted as cost of collection, while N246.87 billion was used for transfers, refunds, and savings.
Further analysis showed that from the statutory revenue portion, the Federal Government received N632.26 billion, states got N320.69 billion, and local governments received N247.24 billion, while derivation payments accounted for N120.76 billion.
From the VAT pool of N515.39 billion, the Federal Government received N51.54 billion, states got N283.47 billion, and local governments received N180.39 billion, highlighting the growing role of VAT in supporting subnational revenues.
Meanwhile, the N200 billion augmentation was shared with the Federal Government receiving N105.36 billion, states N53.44 billion, and local governments N41.20 billion.
On revenue performance, FAAC noted that gross statutory revenue rose to N1.699 trillion in March, an increase of N137.91 billion compared to February. This growth played a key role in boosting the total allocation for the month.
However, VAT revenue declined slightly, with N664.43 billion recorded in March, down from N668.45 billion in February.
The report also indicated strong growth in non-oil taxes, including Companies Income Tax, Capital Gains Tax, Stamp Duties, and Excise Duty.
In contrast, revenues from Petroleum Profit Tax, Hydrocarbon Tax, oil and gas royalties, import duties, and the Common External Tariff recorded significant declines, reflecting ongoing fluctuations in oil and trade-related income.
Overall, the FAAC report shows that while Nigeria is seeing improvements in non-oil revenue generation, instability in oil revenues continues to impact the consistency of monthly allocations.
