The Federation Account Allocation Committee (FAAC) has distributed a total revenue of N1.578 trillion among the Federal Government, state governments, and local government councils for March 2025.
This marks the third consecutive monthly decline in revenue allocations, falling from N1.678 trillion in February and N1.703 trillion in January.
Details of the revenue distribution were contained in a press statement released on Tuesday by Bawa Mokwa, Director of Press and Public Relations at the Office of the Accountant General of the Federation. The announcement followed the FAAC meeting for April 2025, held in Abuja.
According to the statement, the shared revenue for March included receipts from statutory revenue, Value Added Tax (VAT), Electronic Money Transfer Levy (EMTL), and exchange rate differentials.
“The total distributable sum for March 2025 stood at N1.578 trillion, as agreed during the April FAAC meeting in Abuja,” the release noted.
Despite an uptick in gross statutory revenue for the month, the overall distributable figure declined, impacted by reduced earnings from VAT and EMTL.
March Allocation Breakdown
From the total of N1.578 trillion distributed, the Federal Government received N528.696 billion, states got N530.448 billion, and local government councils were allocated N387.002 billion. Additionally, N132.611 billion was disbursed to oil-producing states as 13% derivation revenue.
The statutory revenue accounted for the largest share at N931.325 billion, with the Federal Government receiving N422.485 billion, states N214.290 billion, and local councils N165.209 billion. A derivation component of N129.341 billion was also part of this category.
For VAT, which totaled N593.750 billion, the Federal Government collected N89.063 billion, states received N296.875 billion, and local councils got N207.813 billion.
From EMTL proceeds of N24.971 billion, the Federal Government was allocated N3.746 billion, while states and local councils received N12.485 billion and N8.740 billion respectively.
Regarding the exchange difference revenue of N28.711 billion, the Federal Government received N13.402 billion, states N6.798 billion, and local governments N5.241 billion. An additional N3.270 billion from this category was also distributed as derivation revenue.
Mixed Trends in Gross Revenue
Total gross revenue for March 2025 was N2.411 trillion. From this, N85.376 billion was deducted as collection cost and N747.180 billion was allocated for statutory transfers, refunds, and intervention funds, leaving N1.578 trillion as the net distributable sum — the lowest recorded so far this year.
Gross statutory revenue rose to N1.718 trillion in March, up from N1.653 trillion in February. However, VAT collections declined from N654.456 billion in February to N637.618 billion in March, representing a decrease of N16.838 billion.
FAAC attributed the continued decline in distributable revenue to reduced receipts from oil and gas royalties, VAT, EMTL, excise duty, import duty, and Common External Tariff (CET) levies. Nonetheless, there were notable increases in Petroleum Profit Tax (PPT) and Companies Income Tax (CIT) during the period.
Amid the sustained drop in allocations, financial analysts have raised concerns about the potential implications for sub-national governments, many of which depend heavily on FAAC distributions to meet recurrent obligations and finance capital projects.
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