Improved statutory revenue performance boosted distributable funds in March 2026, with the Federation Account Allocation Committee (FAAC) sharing a total of N2.036 trillion among the three tiers of government at its April meeting in Abuja.
Data released by the Office of the Accountant-General of the Federation showed that the allocation comprised N1.320 trillion in statutory revenue, N515.391 billion from Value Added Tax (VAT), and N200 billion as augmentation to cushion disbursements.
A communiqué issued after the meeting stated that “a total sum of N2.036 trillion, being the March 2026 Federation Account Revenue, has been shared among the Federal Government, states, and local governments.”
The statement further indicated that gross revenue available for the month stood at N2.364 trillion before deductions. From this, N81.084 billion was deducted as cost of collection, while N246.872 billion was allocated for transfers, refunds, and savings.
Statutory revenue remained the dominant contributor to the pool, rising to N1.699 trillion in March from N1.561 trillion recorded in February—an increase of N137.914 billion.
In contrast, VAT collections recorded a marginal dip. Gross VAT revenue for March stood at N664.425 billion, slightly lower than the N668.450 billion generated in the preceding month.
From the total distributable revenue, the Federal Government received N789.159 billion, states got N657.596 billion, while local government councils were allocated N468.826 billion. Oil-producing states received N120.759 billion as derivation revenue.
A breakdown of statutory revenue showed the Federal Government received N632.260 billion, states N320.691 billion, and local governments N247.239 billion, alongside the N120.759 billion shared as derivation.
From VAT proceeds, the Federal Government got N51.539 billion, states N283.465 billion, and local governments N180.387 billion, reflecting the growing dependence of subnational governments on consumption-based taxes.
The N200 billion augmentation was also distributed, with the Federal Government receiving N105.360 billion, states N53.440 billion, and local governments N41.200 billion.
On revenue performance, the communiqué noted increases in Companies Income Tax (CIT), Capital Gains Tax (CGT), Stamp Duties (SDT), and excise duty. However, it reported declines in Petroleum Profit Tax (PPT), Hydrocarbon Tax (HT), oil and gas royalty, import duty, and CET, while VAT recorded a slight decrease.
FAAC meets monthly to distribute revenue accrued into the federation account in line with constitutional provisions, with allocations reflecting fluctuations in oil receipts, tax collections, and other revenue streams.
