FAAC Disburses N2.04 Trillion as Statutory Revenue Rises by N137.9 Billion
The Federation Account Allocation Committee (FAAC) has announced the distribution of N2.036 trillion to Nigeria's three tiers of government for March 2026, marking a significant financial allocation period. This disbursement comes as gross statutory revenue increased to N1.7 trillion, representing a notable rise of approximately N137.9 billion or nine per cent compared to the N1.56 trillion recorded in February 2026.
Revenue Breakdown and Allocation Details
In a communiqué issued after the April 2026 FAAC meeting held in Abuja, the committee detailed the components of the total distributable revenue. The N2.036 trillion comprised distributable statutory revenue of N1.32 trillion, distributable Value-Added Tax (VAT) revenue of N515.391 billion, and an augmentation of N200 billion. Notably, VAT stood at N664.425 billion, slightly below the N668.45 billion received in February 2026 by N4.025 billion.
The total gross revenue available in March 2026 was N2.036 trillion, with deductions including N81.08 billion for cost of collection and N246.87 billion for transfers, refunds, and savings. The augmentation of N200 billion was also factored into the overall distribution.
Government Receipts from the Disbursement
From the total distributable revenue of N2.036 trillion, the Federal Government received N789.159 billion, state governments were allocated N657.596 billion, and local government councils obtained N468.826 billion. Additionally, N120.759 billion, representing 13 per cent of mineral revenue, was shared with benefiting states as derivation revenue.
Breaking down the N1.32 trillion distributable statutory revenue, the Federal Government got N632.26 billion, state governments received N320.691 billion, and local councils were allotted N247.239 billion, with the same N120.759 billion for derivation revenue. From the VAT revenue of N515.391 billion, the Federal Government took N51.539 billion, states received N283.465 billion, and local governments got N180.387 billion. The N200 billion augmentation saw the Federal Government receive N105.36 billion, states N53.440 billion, and local governments N41.200 billion.
Tax Performance and Economic Implications
The communiqué highlighted that in March 2026, certain taxes showed positive trends, with company income tax (CIT), capital gains tax (CGT), stamp duty tax (SDT), and excise duty experiencing significant increases. Conversely, petroleum profit tax (PPT), hydrocarbon tax (HT), oil and gas royalty, import duty, and CET decreased considerably, indicating shifts in revenue sources.
This allocation underscores the ongoing financial management and revenue distribution efforts by FAAC, impacting federal, state, and local government operations across Nigeria.
