The Federal Government, state governments, and local government councils have shared a total of N1.578 trillion from the Federation Account Allocation Committee (FAAC) for the month of March 2025. The disbursement was announced on Monday following FAAC’s monthly meeting held in Abuja.
A communiqué issued by Bawa Mokwa, Director of Press and Public Relations at the Office of the Accountant-General of the Federation (OAGF), revealed that the revenue was shared at the April 2025 meeting of the committee, which comprises representatives from federal, state, and local governments.
– Statutory Revenue: N931.325 billion
– Value Added Tax (VAT): N593.750 billion
– Electronic Money Transfer Levy (EMTL): N24.971 billion
– Exchange Difference Revenue: N28.711 billion
The communiqué noted that gross revenue available for distribution in March was N2.411 trillion. However, deductions were made for the cost of collection and other financial obligations:
– Cost of Collection: N85.376 billion
– Transfers, Interventions, and Refunds: N747.180 billion
This brought the total distributable revenue down to N1.578 trillion, which was then allocated to the three tiers of government and states benefiting from oil revenue.
From the total revenue of N1.578 trillion, the distribution was as follows:
– Federal Government: N528.696 billion
– State Governments: N530.448 billion
– Local Government Councils: N387.002 billion
– Oil-producing States (13% Derivation Fund): N132.611 billion
This means oil-producing states received an additional allocation as derivation revenue based on their contributions to mineral wealth.
Out of the N931.325 billion statutory revenue shared:
– Federal Government: N422.485 billion
– State Governments: N214.290 billion
– Local Government Councils: N165.209 billion
– 13% Derivation to Oil-producing States: N129.341 billion
The statutory revenue is largely derived from oil and non-oil revenue sources, including crude oil sales, Companies Income Tax (CIT), Petroleum Profit Tax (PPT), and other levies.
The VAT component of N593.750 billion was distributed as follows:
– Federal Government: N89.063 billion
– State Governments: N296.875 billion
– Local Government Councils: N207.813 billion
Though VAT is a consumption tax paid on goods and services, it is a major source of non-oil revenue for the country.
The Electronic Money Transfer Levy (EMTL), a tax imposed on electronic transfers, contributed N24.971 billion to the total pool. This was distributed as follows:
– Federal Government: N3.746 billion
– State Governments: N12.485 billion
– Local Government Councils: N8.740 billion
The EMTL, introduced to widen the country’s tax net, has become an increasingly important revenue line for the government in recent years.
In addition, Exchange Difference revenue of N28.711 billion was added to the March distribution due to variations in exchange rates that boosted federal earnings from oil sales.
In February 2025, the total gross statutory revenue was N1.653 trillion. The N1.718 trillion received in March shows an increase of N65.422 billion, indicating a slight rebound in federal earnings. However, VAT revenue dropped from N654.456 billion in February to N637.618 billion in March, reflecting a decrease of N16.838 billion.
The dip in VAT collections may be tied to reduced consumption levels, likely influenced by rising inflation and declining consumer purchasing power across the country.
According to the FAAC communiqué, revenue performance in March revealed:
-Significant increase in Petroleum Profit Tax (PPT) and Companies Income Tax (CIT)
– Decrease in revenue from:
– Oil and Gas Royalty
– VAT
– Excise Duty
– Import Duty
– Common External Tariff (CET) Levies
– EMTL
The increase in PPT and CIT may be linked to improved compliance and better monitoring by the Federal Inland Revenue Service (FIRS), while the decline in other revenue sources could be a result of the global economic slowdown and domestic challenges such as import restrictions and high inflation.
The monthly FAAC disbursement is critical for government operations at all levels. For many states, especially those with weak internally generated revenue (IGR), the allocation forms the backbone of their budgets and is used to pay salaries, run ministries, and fund infrastructure.
As the country continues to grapple with economic challenges—ranging from fuel subsidy removal, currency devaluation, and inflation—government at all levels are under pressure to maintain fiscal discipline and ensure prudent use of public funds.
