FAAC Disburses N1.578 Trillion Revenue for March 2025: FG, States, and LGAs Share Windfall

 

In a significant fiscal development, the Federation Account Allocation Committee (FAAC) has shared a total of N1.578 trillion among Nigeria's three tiers of government as revenue allocation for the month of March 2025. This announcement was made following the FAAC meeting held in April, chaired by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, at the headquarters of the Federal Ministry of Finance in Abuja.

The disbursed amount was drawn from a gross total revenue of N2.411 trillion, which included Gross Statutory Revenue, Value Added Tax (VAT), Electronic Money Transfer Levy (EMTL), and Exchange Difference, according to the official communique issued by the finance ministry.

Breakdown of Allocations

From the total disbursed revenue of N1.578 trillion, the Federal Government received N528.696 billion, the 36 states collectively got N530.448 billion, and Local Government Councils were allocated N387.002 billion. Additionally, oil-producing states received N132.611 billion as 13% derivation revenue, drawn from mineral earnings.

A total of N85.376 billion was set aside as cost of revenue collection, while N747.180 billion was earmarked for transfers, interventions, and refunds, reflecting a continued emphasis on fiscal management and support programs.

VAT Revenue Sees Marginal Decline

In terms of VAT collections, gross revenue for March 2025 amounted to N637.618 billion, a slight decline compared to N654.456 billion generated in February, representing a N16.838 billion drop. Out of this figure, N25.505 billion went toward cost of collection, while N18.363 billion was used for interventions and refunds.

The remaining N593.750 billion from VAT was distributed as follows:

• Federal Government: N89.063 billion

• States: N296.875 billion

• Local Governments: N207.813 billion

Statutory Revenue Rises Month-on-Month

The report highlighted a noteworthy increase in gross statutory revenue, which totaled N1.718 trillion for March—an increase of N65.422 billion from the N1.653 trillion recorded in February. From this pool, N58.831 billion was allocated to collection costs, and N728.817 billion was used for transfers, interventions, and refunds.

The net N931.325 billion available for distribution was shared as follows:

• Federal Government: N422.485 billion

• States: N214.290 billion

• Local Governments: N165.209 billion

• Oil-Producing States (13% Derivation): N129.341 billion

EMTL and Exchange Difference Contributions

The Electronic Money Transfer Levy (EMTL) generated N26.011 billion, which was split among the three tiers of government after deducting N1.040 billion for collection. The federal government got N3.746 billion, states received N12.485 billion, and local governments were allocated N8.740 billion.

Also included in the March revenue pool was N28.711 billion from Exchange Difference, distributed as follows:

• Federal Government: N13.402 billion

• States: N6.798 billion

• Local Governments: N5.241 billion

• Oil-Producing States: N3.270 billion

Mixed Performance Across Revenue Sources

The communique indicated a notable increase in Petroleum Profit Tax (PPT) and Companies Income Tax (CIT), signaling improved corporate tax compliance or economic activity. However, it also noted decreases in Oil and Gas Royalties, VAT, EMTL, Excise Duty, Import Duty, and Common External Tariff (CET) Levies, reflecting fluctuations in revenue performance across sectors.

Final Distributable Pool

Summarizing the allocations, FAAC confirmed that the total distributable revenue for March 2025 stood at N1.578 trillion, comprising:

• Statutory Revenue: N931.325 billion

• VAT: N593.750 billion

• EMTL: N24.971 billion

• Exchange Difference: N28.711 billion

This substantial disbursement is expected to support budget implementation across the three tiers of government, enhance public service delivery, and stimulate developmental activities across Nigeria’s federating units.