FAAC Shares N2.036trn March Revenue to FG, States, LGs

Improved statutory revenue performance in March 2026 boosted allocations to the three tiers of government, with the Federation Account Allocation Committee (FAAC) disbursing a total of N2.036tn at its April meeting in Abuja.

The latest payout reflects a revenue mix heavily supported by statutory inflows, even as Value Added Tax (VAT) receipts recorded a marginal decline during the period.

Details released by the Office of the Accountant-General of the Federation showed that the distributable sum comprised N1.320tn in statutory revenue, N515.391bn from VAT, and N200bn in augmentation to cushion allocations.

According to the statement, “a total sum of N2.036tn, being the March 2026 Federation Account Revenue, has been shared among the Federal Government, states, and local governments.”

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The communiqué further noted that “total gross revenue of N2.364tn was available in the month of March 2026,” before statutory deductions. From this amount, N81.084bn was deducted as cost of collection, while N246.872bn went to transfers, refunds, and savings.

Revenue data showed that statutory earnings were the primary driver of the increase. The statement said “gross statutory revenue of N1.699tn was received for the month of March 2026. This was higher than the sum of N1.561tn received in the preceding month by N137.914bn.”

In contrast, VAT performance weakened slightly, with “gross revenue of N664.425bn… lower than the N668.450bn available in the month of February 2026 by N4.025bn.”

From the total distributable revenue, the Federal Government received N789.159bn, states got N657.596bn, while local government councils were allocated ₦468.826bn. Oil-producing states received N120.759bn as derivation revenue.

A breakdown of statutory revenue showed the Federal Government got N632.260bn, states received ₦320.691bn, and local governments N247.239bn, with N120.759bn shared as derivation.

From VAT proceeds, the Federal Government received N51.539bn, states N283.465bn, and local governments N180.387bn, underscoring the growing reliance of subnational governments on consumption taxes.

The N200bn augmentation was also shared, with the Federal Government receiving ₦105.360bn, states ₦53.440bn, and local governments N41.200bn.

On revenue trends, the communiqué stated, “In March 2026, Companies Income Tax (CIT), CGT, SDT, and excise duty increased significantly while Petroleum Profit Tax (PPT), Hydrocarbon Tax (HT), Oil and Gas Royalty, Import Duty, and CET decreased considerably. Value Added Tax (VAT) decreased marginally.”