The Federation Account Allocation Committee (FAAC) has shared N2.036 trillion among the Federal Government, states and local government councils for March 2026.
The revenue was distributed at the April FAAC meeting held in Abuja.
The allocation reflects monthly earnings from statutory sources, VAT and augmentation funds shared across the three tiers of government.
What the federal government is saying
FAAC’s communiqué showed that total distributable revenue for the month was derived from multiple revenue streams, with statutory allocations accounting for the largest share.
- Total distributable revenue stood at N2.036 trillion, drawn from statutory revenue of N1.320 trillion, VAT revenue of N515.391 billion and N200 billion augmentation.
- Gross revenue available for the month was N2.364 trillion, while N81.084 billion was deducted as cost of collection and N246.872 billion was set aside for transfers, refunds and savings.
- Statutory revenue increased to N1.699 trillion in March from N1.561 trillion in the previous month, representing a rise of N137.914 billion.
- VAT revenue declined slightly to N664.425 billion from N668.450 billion in February.
The figures highlight mixed performance across revenue sources, with statutory inflows improving while VAT dipped marginally.
More Insights
The breakdown of the N2.036 trillion distributable revenue shows how funds were allocated across the three tiers of government, including derivation payments to oil-producing states.
- The Federal Government received N789.159 billion in total.
- State governments received N657.596 billion, while local government councils got N468.826 billion.
- A further N120.759 billion, representing 13 per cent derivation revenue, was shared among eligible oil-producing states.
- From statutory revenue alone, the Federal Government received N632.260 billion, the states received N320.691 billion, and LGAs received N247.239 billion.
VAT distribution also followed the standard sharing formula, with states receiving the largest share among the tiers.
FAAC data showed mixed trends across major revenue streams in March, reflecting shifts in Nigeria’s fiscal inflows from taxes and oil-related earnings. While some revenue heads improved, others recorded declines.
- Companies’ Income Tax, Capital Gains Tax, Stamp Duties and Excise Duty recorded significant increases during the period.
- Petroleum Profit Tax, Hydrocarbon Tax, oil and gas royalties, import duty and CET declined considerably.
- VAT also recorded a marginal decline compared to the previous month.
- The augmentation component of N200 billion helped support overall distributable revenue for the month.
What you should know
Nairametrics reported that FAAC for February 2026 recorded higher disbursement than in January, with total disbursements to the 36 states reaching N784.29 billion as net allocation.
- VAT remained the dominant driver of FAAC allocations, accounting for the largest share of distributable revenue to states.
- This augmentation reflects stronger tax, customs, and other non‑oil revenue collections, improving distributable balances beyond baseline statutory inflows.
