Nigeria’s Federation Account Allocation Committee (FAAC) has disbursed a total of N2.03 trillion among the federal government, state governments, and local government councils for March 2026, reflecting the latest distribution of national revenue. The allocation was finalized during FAAC’s April meeting held in Abuja, where officials reviewed revenue performance and shared proceeds across the three tiers of government.
According to a communiqué issued after the meeting, the distributable revenue consisted of N1.32 trillion from statutory sources, N515.39 billion from value-added tax (VAT), and an additional N200 billion provided as augmentation. The total gross revenue available for the month stood at N2.36 trillion, with deductions of N81.08 billion for collection costs and N246.87 billion for transfers, refunds, and savings.
Despite the overall increase in statutory revenue—which rose to N1.69 trillion in March from N1.56 trillion in February—VAT collections continued a downward trend. Gross VAT revenue fell slightly to N664.43 billion, marking a N4.03 billion decline from the previous month. This represents the second consecutive drop in VAT revenue, raising concerns about consumption levels and tax performance in the broader economy.
From the N2.03 trillion shared, the federal government received N789.15 billion, while state governments got N657.59 billion and local government councils received N468.82 billion. Additionally, oil-producing states were allocated N120.75 billion as derivation revenue, representing 13 percent of mineral earnings—an important source of income for regions dependent on oil production.
A closer breakdown shows that from the statutory revenue, the federal government received N632.26 billion, states got N320.69 billion, and local governments received N247.24 billion. VAT proceeds were distributed with N51.53 billion going to the federal government, N283.46 billion to states, and N180.38 billion to local councils. Meanwhile, the N200 billion augmentation was shared as N105.36 billion for the federal government, N53.44 billion for states, and N41.20 billion for local governments. While collections from taxes such as company income tax and excise duty improved, declines in oil-related revenues and import duties continue to weigh on Nigeria’s fiscal outlook.
source: The Cable