The Federation Account Allocation Committee (FAAC) has distributed a total of N1.578 trillion among the federal, state, and local governments for March 2025, marking the third straight monthly decline in revenue allocations this year.
The disclosure came on Tuesday through Bawa Mokwa, Director of Press and Public Relations in the Office of the Accountant General of the Federation, following the April 2025 FAAC meeting held in Abuja.
This latest disbursement represents a decrease from N1.678 trillion shared in February and N1.703 trillion in January, continuing a downward trend.
The distributed revenue comprised N931.325 billion from statutory sources, N593.750 billion from Value Added Tax (VAT), N24.971 billion from the Electronic Money Transfer Levy (EMTL), and N28.711 billion from exchange rate gains.
According to the breakdown, the Federal Government received N528.696 billion, state governments got N530.448 billion, and local government councils received N387.002 billion. An additional N132.611 billion was allocated to oil-producing states under the 13 percent derivation principle.
From the statutory revenue alone, N422.485 billion went to the Federal Government, states got N214.290 billion, and local councils received N165.209 billion. Derivation revenue from this component amounted to N129.341 billion.
VAT revenue was distributed with N89.063 billion to the Federal Government, N296.875 billion to states, and N207.813 billion to local governments.
For the EMTL revenue, the Federal Government received N3.746 billion, states received N12.485 billion, and local governments got N8.740 billion. Exchange rate gains were shared as follows: N13.402 billion to the Federal Government, N6.798 billion to states, N5.241 billion to local councils, and N3.270 billion as derivation to oil-producing states.
The committee reported a gross revenue of N2.411 trillion in March. However, N85.376 billion was deducted for collection costs, while N747.180 billion was set aside for refunds, transfers, and special interventions.
While gross statutory revenue increased slightly from N1.653 trillion in February to N1.718 trillion in March, VAT collections dropped from N654.456 billion to N637.618 billion. FAAC also noted significant growth in Petroleum Profit Tax and Companies Income Tax.
However, there were notable declines in oil and gas royalties, VAT, EMTL, excise duties, import duties, and levies under the Common External Tariff (CET).
The continuous decline in monthly allocations raises concerns about the financial health of state and local governments, particularly as they face growing inflationary pressures and rising public expenditure demands.
