FAAC allocation down by N100bn in March despite revenue rise
The Federation Account Allocation Committee (FAAC) has reported a total revenue distribution of N1.57 trillion to the federal, state, and local governments for March 2025—reflecting a drop of N100 billion compared to the N1.67 trillion shared in February.
This was disclosed in a communiqué issued after FAAC’s monthly meeting chaired by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun. The funds were drawn from a gross revenue pool of N2.411 trillion, comprising statutory revenue, Value Added Tax (VAT), Electronic Money Transfer Levy (EMTL), and exchange rate gains.
Revenue distribution breakdown:
Federal Government: N528.69 billion
State Governments: N530.44 billion
Local Government Councils: N387 billion
Oil-Producing States (13% derivation): N132.61 billion
Cost of Collection: N85.37 billion
Transfers, Interventions & Refunds: N747.18 billion
Despite a monthly increase in statutory revenue, VAT saw a decline. Gross VAT revenue stood at N637.62 billion in March—down from N654.46 billion in February. After accounting for deductions, N593.75 billion was shared, with the federal government receiving N89.06 billion, states N296.87 billion, and local councils N207.81 billion.
Statutory revenue rose to N1.718 trillion in March, up by N65.42 billion from February. After removing collection costs and transfers, the balance of N931.32 billion was shared:
Federal Government: N422.49 billion
States: N214.29 billion
Local Governments: N165.21 billion
Oil-Producing States (Derivation): N129.34 billion
From the Electronic Money Transfer Levy (EMTL), a total of N26.01 billion was distributed, with the federal government receiving N3.75 billion, states N12.49 billion, and local governments N8.74 billion. In addition, N28.71 billion from exchange rate gains was also shared among the three tiers.
FAAC noted that while Petroleum Profit Tax (PPT) and Companies Income Tax (CIT) saw increases, other revenue streams—including VAT, EMTL, excise duty, import duty, and CET levies—recorded declines.
