The Federation Account Allocation Committee (FAAC) has distributed a total of N1.578 trillion among the Federal Government, 36 States, and 774 Local Government Councils, as revenue accrued to the Federation Account in March 2025.
The allocation was finalized at the April 2025 FAAC meeting held in Abuja.
According to a communiqué issued by FAAC, the total distributable revenue comprised:
N931.325 billion from statutory revenue,
N593.750 billion from Value Added Tax (VAT),
N24.971 billion from Electronic Money Transfer Levy (EMTL), and
N28.711 billion from Exchange Difference revenue.
The gross revenue available for March stood at N2.411 trillion, up from February’s figure, with N85.376 billion deducted as collection cost and N747.180 billion allocated to various transfers, interventions, and refunds.
Disbursement Breakdown:
From the total distributable revenue of N1.578 trillion:
Federal Government received N528.696 billion,
State Governments received N530.448 billion,
Local Government Councils received N387.002 billion,
N132.611 billion was distributed as 13% derivation revenue to oil-producing states.
Statutory Revenue Allocation (N931.325 billion):
Federal Government: N422.485 billion
State Governments: N214.290 billion
Local Governments: N165.209 billion
Derivation (13%): N129.341 billion
VAT Revenue Allocation (N593.750 billion):
Federal Government: N89.063 billion
State Governments: N296.875 billion
Local Governments: N207.813 billion
EMTL Revenue Allocation (N24.971 billion):
Federal Government: N3.746 billion
State Governments: N12.485 billion
Local Governments: N8.740 billion
Exchange Difference Revenue (N28.711 billion):
Federal Government: N13.402 billion
State Governments: N6.798 billion
Local Governments: N5.241 billion
Derivation (13%): N3.270 billion
Revenue Trends:
The communiqué noted a significant increase in Petroleum Profit Tax (PPT) and Companies Income Tax (CIT) in March. However, there were declines in other major revenue streams including Oil and Gas Royalties, VAT, EMTL, Excise Duty, Import Duty, and CET Levies.
This mixed performance underscores the ongoing volatility in Nigeria’s revenue sources, reinforcing the need for urgent diversification and more robust fiscal reforms to ensure sustainable public financing.
Credit: Promtnewsonline
