The Federation Account Allocation Committee (FAAC disburses N1.578 trillion to the federal, state, and local governments in March 2025, with revenue from VAT declining. Get full details on the breakdown and fiscal implications.
FAAC Disburses N1.578 Trillion March Revenue to Federal, State, and Local Governments
The Federation Account Allocation Committee (FAAC) has shared a total of N1.578 trillion among the three tiers of government federal, states, and local councils as revenue generated in March 2025.
The allocation was confirmed during the April 2025 FAAC meeting held in Abuja. It marks the second consecutive month of decline in revenue shared by the committee.
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NIGERIA Federal ministry of agriculture and rural development
According to the official communiqué issued after the meeting, the total distributable revenue for the month comprised N931.325 billion from statutory sources, N593.750 billion from Value Added Tax (VAT), N24.971 billion from the Electronic Money Transfer Levy (EMTL), and N28.711 billion from exchange rate differentials.
Gross revenue for March stood at N2.411 trillion. From this amount, N85.376 billion was deducted for the cost of collection, while N747.180 billion was earmarked for transfers, interventions, and refunds.
Despite the overall decline in net distributable revenue, the statutory revenue for March which totaled N1.718 trillion recorded an increase of N65.422 billion compared to the N1.653 trillion generated in February. However, VAT revenue declined to N637.618 billion from N654.456 billion recorded in the previous month, representing a shortfall of N16.838 billion.
Out of the total N1.578 trillion shared, the federal government received N528.696 billion, while state governments got a combined N530.448 billion. Local governments were allocated N387.002 billion. Additionally, N132.611 billion, representing 13 percent of mineral revenue, was distributed to oil-producing states as derivation.
A breakdown of the N931.325 billion statutory revenue shows that the federal government received N422.485 billion, the states N214.290 billion, and local governments N165.209 billion. Oil-producing states received an additional N129.341 billion from this pool.
From the VAT revenue of N593.750 billion, the federal government took N89.063 billion, states received N296.875 billion, and local councils got N207.813 billion.
Regarding the EMTL revenue of N24.971 billion, N3.746 billion was allocated to the federal government, while the states and local governments received N12.485 billion and N8.740 billion respectively.
Exchange Difference revenue of N28.711 billion was also distributed: N13.402 billion to the federal government, N6.798 billion to states, and N5.241 billion to local governments. An additional N3.270 billion from this component went to oil-producing states as 13 percent derivation.
While Petroleum Profit Tax (PPT) and Companies Income Tax (CIT) witnessed a significant boost during the period under review, revenues from other key sources including Oil and Gas Royalties, EMTL, VAT, Excise Duty, Import Duty, and Common External Tariff (CET) levies experienced notable declines.
