The Federation Account Allocation Committee (FAAC) has distributed a total of N2.03 trillion among the federal government, state governments, and local government councils for March 2026. The allocation was finalized during FAAC's April meeting held in Abuja, according to a communiqué issued after the session and reported by the News Agency of Nigeria (NAN).
Breakdown of Distributable Revenue
FAAC explained that the N2.03 trillion shared comprised N1.32 trillion from statutory revenue, N515.39 billion generated from value-added tax (VAT), and N200 billion provided as augmentation. The committee also disclosed that the total gross revenue available in March stood at N2.36 trillion. From this amount, N81.08 billion was deducted as the cost of collection, while N246.87 billion was allocated for transfers, refunds, and savings.
What FG, States, and LGs Received
From the distributable sum, the federal government received N789.15 billion, while state governments were allocated N657.59 billion. Local government councils got N468.82 billion. In addition, oil-producing states received N120.75 billion as derivation revenue, representing 13 per cent of mineral earnings.
Details of Statutory, VAT, and Augmentation Sharing
According to the communiqué, out of the N1.32 trillion statutory revenue, the federal government received N632.26 billion, states got N320.69 billion, and local governments were allocated N247.24 billion. From the N515.39 billion VAT pool, the federal government received N51.53 billion, states got N283.46 billion, while local councils received N180.38 billion. Similarly, the N200 billion augmentation was shared with the federal government receiving N105.36 billion, states N53.44 billion, and local governments N41.20 billion, as reported by The Cable.
Revenue Trends Show Mixed Performance
FAAC noted that gross statutory revenue increased to N1.69 trillion in March, up from N1.56 trillion recorded in February, indicating a rise of N137.91 billion. However, VAT revenue dropped slightly to N664.43 billion in March from N668.45 billion in February, marking a marginal decline. The committee added that revenues from company income tax (CIT), capital gains tax (CGT), stamp duties, and excise duty recorded notable increases during the period. In contrast, collections from petroleum profit tax (PPT), hydrocarbon tax, oil and gas royalties, import duties, and the common external tariff (CET) declined.
IMF Warns Nigerians of Rising Hardship
Legit.ng earlier reported that the International Monetary Fund (IMF) has cautioned that Nigerians may face increased economic hardship in the near future, citing rising food and transportation costs amid ongoing global uncertainties. According to the Fund, these pressures are already affecting household incomes, even as higher crude oil prices offer prospects for improved government revenue. Crude oil prices above $113 per barrel could boost Nigeria's revenue beyond budget projections. Experts warn that oil windfalls may not translate to economic relief without disciplined fiscal management.
