By Ajibola Olaide, JKNewsMedia Reporter
THE FEDERATION Account Allocation Committee (FAAC) disbursed N1.578 trillion to Nigeria’s federal, state, and local governments as revenue for March 2025, drawn from a gross pool of N2.411 trillion.
The allocations, agreed during FAAC’s April 2025 meeting in Abuja and chaired by Minister of Finance and Coordinating Minister of the Economy, Wale Edun, reflect a complex interplay of rising statutory inflows and declining VAT collections.
Out of the total distributable revenue, the Federal Government received N528.696 billion, states took in N530.448 billion, and local government councils were allocated N387.002 billion.
Oil-producing states, benefiting from the 13% derivation principle, received N132.611 billion from mineral revenue.
The disbursed funds originated from four key sources: Gross Statutory Revenue of N931.325 billion, Value Added Tax (VAT) of N593.750 billion, Electronic Money Transfer Levy (EMTL) of N24.971 billion, and an Exchange Difference of N28.711 billion.
Deductions for cost of collection stood at N85.376 billion, while Transfers, Interventions, and Refunds accounted for N747.180 billion—reflecting significant commitments to fiscal redistribution mechanisms and administrative overheads.
Statutory revenue rose month-on-month by N65.422 billion, climbing to N1.718 trillion in March from N1.653 trillion in February.
After deductions of N58.831 billion for collection and N728.817 billion for refunds and interventions, the remaining N931.325 billion was distributed across tiers of government.
Of that amount, the Federal Government received N422.485 billion, states received N214.290 billion, local councils received N165.209 billion, and N129.341 billion was earmarked for oil-producing states.
Despite a drop in VAT revenue—N637.618 billion in March, down N16.838 billion from February—the distribution continued.
After subtracting N25.505 billion for collection and N18.363 billion for other commitments, N593.750 billion was shared among the three tiers.
The Federal Government took N89.063 billion, the states received N296.875 billion, and local councils got N207.813 billion.
Revenue from EMTL amounted to N26.011 billion, of which the Federal Government received N3.746 billion, states received N12.485 billion, and local councils were given N8.740 billion. Cost of collection consumed N1.040 billion.
Exchange rate differences generated an additional N28.711 billion, disbursed as follows: Federal Government, N13.402 billion; states, N6.798 billion; local councils, N5.241 billion; and oil-producing states, N3.270 billion.
According to the FAAC communiqué issued by the Office of the Accountant-General of the Federation, Petroleum Profit Tax (PPT) and Companies Income Tax (CIT) recorded notable increases, underlining improved corporate earnings and upstream sector performance.
However, VAT, EMTL, Oil and Gas royalties, Excise Duties, Import Duties, and Common External Tariff (CET) Levies experienced declines, hinting at sluggish consumer spending and import activity.
