The Federation Account Allocation Committee (FAAC) reported a continued decline in revenue shared among the federal, state, and local governments, with N1.578 trillion distributed for March 2025. This marks the third straight monthly decrease following N1.678tn in February and N1.703tn in January. The data was released in a statement by Bawa Mokwa, Director of Press and Public Relations at the Office of the Accountant General of the Federation, following the April FAAC meeting in Abuja.
The N1.578tn distributed came from four major sources: statutory revenue (N931.325bn), Value Added Tax (N593.750bn), the Electronic Money Transfer Levy (N24.971bn), and exchange difference revenue (N28.711bn). The federal government received N528.696bn from the total pool, while the states and local government councils got N530.448bn and N387.002bn respectively. An additional N132.611bn was allocated to oil-producing states as 13% derivation revenue.
A deeper breakdown reveals that of the statutory revenue, the federal government took N422.485bn, states N214.290bn, and LGs N165.209bn. From VAT, the federal share stood at N89.063bn, while states and LGs got N296.875bn and N207.813bn respectively. For the EMTL, the federal government received N3.746bn, states N12.485bn, and LGs N8.740bn. Exchange difference allocations also followed a similar pattern of distribution, with oil-producing states receiving an additional derivation share.
Despite a slight increase in gross statutory revenue—from N1.653tn in February to N1.718tn in March—VAT collections dipped. Meanwhile, revenues from Petroleum Profit Tax and Companies Income Tax saw gains, but these were offset by declines in oil and gas royalty, EMTL, excise duty, and import-related levies. This ongoing dip in shared allocations raises fresh concerns over the financial resilience of subnational governments, especially with inflation and spending pressures mounting.
Source: Punch