The Federation Account Allocation Committee (FAAC) has disbursed a total of N1.578 trillion among the federal, state, and local governments for March 2025, marking the third consecutive monthly decline in revenue allocations this year.
This development was disclosed in a statement released on Tuesday by Bawa Mokwa, Director of Press and Public Relations in the Office of the Accountant General of the Federation, following the April FAAC meeting in Abuja.
The disbursement represents a drop from the N1.678 trillion shared in February and N1.703 trillion in January.
According to the statement, the N1.578 trillion 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.
The statement read: “A total sum of N1.578tn, being March 2025 Federation Account Revenue, has been shared to the Federal Government, States and the Local Government Councils.
“The revenue was shared at the April 2025 Federation Account Allocation Committee meeting held in Abuja.”
From the total amount, 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 distributed to oil-producing states as 13 per cent derivation revenue.
A breakdown of the statutory revenue of N931.325 billion showed that the Federal Government received N422.485 billion, states received N214.290 billion, and local governments got N165.209 billion.
From the VAT pool of N593.750 billion, the Federal Government received N89.063 billion, while the states and local governments received N296.875 billion and N207.813 billion respectively.
Regarding the EMTL, the Federal Government got N3.746 billion, states received N12.485 billion, and local councils received N8.740 billion.
The N28.711 billion from the exchange difference revenue was shared as follows: the Federal Government received N13.402 billion, states N6.798 billion, and local governments N5.241 billion. Oil-producing states received an additional N3.270 billion from this source as derivation revenue.
FAAC disclosed that a gross revenue of N2.411 trillion was available in March. However, N85.376 billion was deducted as the cost of collection, while N747.180 billion was allocated to transfers, refunds, and other interventions.
While the gross statutory revenue increased from N1.653 trillion in February to N1.718 trillion in March, VAT collections declined from N654.456 billion to N637.618 billion.
FAAC noted that Petroleum Profit Tax and Companies Income Tax recorded significant increases during the month. However, it observed that revenue from oil and gas royalties, VAT, EMTL, excise duty, import duty, and CET levies declined.
The continuous drop in monthly allocations may raise concerns over the financial stability of state and local governments, especially amidst rising inflation and increasing expenditure demands.
