The Federation Account Allocation Committee has disbursed a total of N2.036 trillion to the Federal Government, state governments, and local government councils as revenue allocation for March 2026. The distribution was finalized during the committee’s April meeting held in Abuja, reflecting inflows from statutory revenue, Value Added Tax (VAT), and augmentation funds.
According to the FAAC communiqué, the total distributable revenue comprised N1.320 trillion from statutory sources, N515.391 billion from VAT, and N200 billion in augmentation. Gross revenue for the month stood at N2.364 trillion, from which N81.084 billion was deducted as cost of collection, while N246.872 billion was allocated for transfers, refunds, and savings.
The report indicated an improvement in statutory revenue, which rose to N1.699 trillion in March from N1.561 trillion recorded in February, marking an increase of N137.914 billion. In contrast, VAT revenue experienced a slight decline, dropping to N664.425 billion from N668.450 billion in the previous month, highlighting mixed performance across key revenue streams.
A breakdown of the N2.036 trillion allocation shows that the Federal Government received N789.159 billion, while state governments were allocated N657.596 billion, and local government councils received N468.826 billion. Additionally, N120.759 billion, representing 13% derivation revenue, was distributed among oil-producing states.
Further analysis revealed that from statutory revenue alone, the Federal Government received N632.260 billion, states got N320.691 billion, and local governments received N247.239 billion. VAT distribution followed the standard sharing formula, with states receiving the largest portion among the three tiers.
The data also showed varied trends across major revenue sources. Companies’ Income Tax, Capital Gains Tax, Stamp Duties, and Excise Duty recorded notable increases during the period. However, revenues from Petroleum Profit Tax, Hydrocarbon Tax, oil and gas royalties, import duties, and the Common External Tariff declined significantly. VAT also recorded a marginal drop, while the N200 billion augmentation supported overall distributable revenue.
Overall, the March allocation reflects ongoing shifts in Nigeria’s fiscal inflows, with stronger non-oil revenue contributions helping to offset declines in oil-related earnings, while maintaining stable distributions across all tiers of government.
