ABUJA, Nigeria (VOICE OF NAIJA)-The Federation Account Allocation Committee (FAAC) has announced a further decline in monthly revenue disbursements to the three tiers of government, with a total of N1.578 trillion shared in March 2025.
This marks the third straight month of declining allocations, following N1.678 trillion in February and N1.703 trillion in January.
The latest figures were disclosed in a press statement released on Tuesday by Director of Press and Public Relations at the Office of the Accountant General of the Federation, Bawa Mokwa after the April FAAC meeting in Abuja.
According to the statement, the March revenue comprised N931.325 billion from statutory revenue, N593.750 billion from Value Added Tax (VAT), N24.971 billion from the Electronic Money Transfer Levy (EMTL), and N28.711 billion from exchange difference revenue.
Of the total distributable amount, the Federal Government received N528.696 billion, state governments received N530.448 billion, and local government councils got N387.002 billion.
Additionally, N132.611 billion was allocated to oil-producing states as 13% derivation revenue.
Further details reveal that from the N931.325 billion statutory revenue, the Federal Government took N422.485 billion, the states N214.290 billion, and local governments N165.209 billion.
A total of N129.341 billion was allocated as derivation revenue from this component.
From the VAT pool of N593.750 billion, the Federal Government received N89.063 billion, the states N296.875 billion, and local governments N207.813 billion.
Under the EMTL allocation, the Federal Government received N3.746 billion, while states and local governments got N12.485 billion and N8.740 billion, respectively.
From the N28.711 billion generated as exchange difference revenue in March, the Federal Government received N13.402 billion, while N6.798 billion was allocated to state governments, and N5.241 billion to local governments.
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An additional N3.270 billion was disbursed to oil-producing states as 13% derivation.
According to FAAC, total gross revenue for March stood at N2.411 trillion.
Out of this amount, N85.376 billion was deducted as cost of collection, while N747.180 billion was earmarked for transfers, refunds, and other interventions.
Despite a rise in gross statutory revenue from N1.653 trillion in February to N1.718 trillion in March, Value Added Tax collections dropped from N654.456 billion to N637.618 billion.
The committee observed that Petroleum Profit Tax and Companies Income Tax recorded notable gains during the month.
However, there were declines in revenues from oil and gas royalties, VAT, the Electronic Money Transfer Levy, excise duties, import duties, and CET levies.
The persistent drop in monthly allocations raises concerns about the financial health of subnational governments, particularly as inflation climbs and expenditure pressures mount.