Key points
- Federation Account Allocation Committee shares N2.04tn for March 2026.
- Revenue rises by N150bn from February distribution.
- Growth driven by stronger statutory inflows despite slight VAT decline.
Main story
The Federation Account Allocation Committee (FAAC) has distributed a total of N2.04 trillion as revenue for March 2026 to the three tiers of government, reflecting improved inflows compared to the previous month.
The figure represents an increase of about N150 billion from the N1.89 trillion shared in February, according to a statement issued by the Office of the Accountant-General of the Federation.
A total of N2.036 trillion was shared at the April FAAC meeting in Abuja, comprising N1.32 trillion from statutory revenue, N515.39 billion from Value Added Tax (VAT), and N200 billion as augmentation.
The breakdown
The distribution shows that the Federal Government received N789.16 billion, states got N657.60 billion, while local government councils received N468.83 billion. Oil-producing states were allocated N120.76 billion as derivation revenue.
From statutory revenue alone, the Federal Government received N632.26 billion, states N320.69 billion, and local governments N247.24 billion.
Similarly, from the VAT pool, the Federal Government got N51.54 billion, states N283.47 billion, and local governments N180.39 billion.
The issues
The increase in FAAC allocation was largely driven by improved statutory revenue, which rose significantly compared to February.
However, the report highlighted continued volatility in oil-related revenues, alongside a marginal decline in VAT collections, pointing to mixed performance across revenue streams.
WHAT’S BEING SAID
According to the communiqué, total gross revenue for March stood at N2.364 trillion, from which N81.08 billion was deducted as cost of collection, while N246.87 billion went to transfers, refunds, and savings.
The statement noted significant increases in non-oil taxes such as Companies Income Tax, Capital Gains Tax, Stamp Duties, and Excise Duty.
In contrast, Petroleum Profit Tax, hydrocarbon tax, oil and gas royalties, import duties, and CET recorded notable declines.
What’s next
Revenue performance in coming months will depend on stability in oil receipts and continued growth in non-oil tax collections.
Fiscal authorities are also expected to sustain efforts to diversify revenue sources and reduce dependence on volatile oil income.
Bottom line
The N2.04tn FAAC distribution underscores improving government revenues, but ongoing volatility in oil income highlights the need for stronger non-oil revenue growth to sustain fiscal stability.
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