FAAC distributes N2.04tn March revenue as allocation increases by N150bn

The Federation Account Allocation Committee has distributed a total of N2.04 trillion as revenue for March 2026, marking an increase of N150 billion compared to the N1.89 trillion shared in February.

The update was disclosed in a statement released on Wednesday by the Office of the Accountant General of the Federation and signed by its Director of Press and Public Relations, Bawa Mokwa.

According to Mokwa, “A total sum of N2.036tn, being March 2026 Federation Account Revenue, has been shared to the Federal Government, States and the Local Government Councils,” following the April 2026 FAAC meeting held in Abuja.

The N2.04tn distributable revenue comprised N1.32tn from statutory revenue, N515.39bn from Value Added Tax and N200bn as augmentation.

A breakdown showed that the Federal Government received N789.16bn, representing about 38.8 per cent of the total pool, while states got N657.60bn, about 32.3 per cent, and local government councils received N468.83bn, about 23.0 per cent. Oil-producing states received N120.76bn as derivation, accounting for roughly 5.9 per cent of the total.

The communiqué noted that “total gross revenue of N2.364tn was available in the month of March 2026,” from which N81.08bn was deducted as cost of collection, while N246.87bn was recorded as transfers, refunds and savings.

The deductions and transfers together accounted for over 13 per cent of gross inflows, highlighting the scale of statutory obligations before distribution.

From the statutory revenue component of N1.32tn, the Federal Government received N632.26bn, states got N320.69bn, and local governments received N247.24bn, while N120.76bn was shared as derivation.

Similarly, from the N515.39bn VAT pool, the federal government received N51.54bn, states got N283.47bn, and local governments received N180.39bn, reinforcing the growing importance of consumption taxes in subnational revenues.

From the N200bn augmentation, the federal government received N105.36bn, states got N53.44bn, and local governments received N41.20bn, suggesting continued fiscal adjustments to stabilise monthly allocations.

On revenue performance, the communiqué stated that “gross statutory revenue of N1.699tn was received for the month of March 2026,” rising by N137.91bn from the N1.56tn recorded in February. This increase largely drove the higher FAAC distribution, offsetting weaker VAT inflows.

However, VAT collections showed marginal weakness. The statement noted that “gross revenue of N664.425bn was available from the Value Added Tax in March 2026,” lower than the N668.450bn recorded in February by N4.025bn.

The statement added that Companies Income Tax, Capital Gains Tax, Stamp Duties and Excise Duty increased significantly, pointing to improved non-oil tax performance.

In contrast, Petroleum Profit Tax, Hydrocarbon Tax, oil and gas royalty, import duty and CET declined considerably, reflecting ongoing volatility in oil receipts and trade-related revenues, while VAT decreased marginally.

The latest FAAC outcome indicates that while non-oil taxes are strengthening, fluctuations in oil-related revenues continue to shape the size and stability of monthly allocations to the three tiers of government.

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