FG, States, LGs Share ₦2.036trn as FAAC Revenue Hits ₦2.364trn in March

By Onwe Wisdom, Pan Afric Reporters

Nigeria’s three tiers of government shared a total of ₦2.036 trillion as Federation Allocation for March 2026, following a strong revenue inflow of ₦2.364 trillion, signaling sustained fiscal activity despite mixed performance across key revenue streams.

The disbursement was approved at the April 2026 meeting of the Federation Account Allocation Committee (FAAC), chaired by the Honourable Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele.

According to a communiqué issued by the Federal Ministry of Finance and signed by Efe Ovuakporie, Head of Information and Public Relations, the total distributable revenue comprised statutory earnings, Value Added Tax (VAT), and an augmentation component.

A breakdown of the allocation shows that the Federal Government received ₦789.159 billion, State Governments got ₦657.596 billion, while Local Government Councils received ₦468.826 billion. Additionally, oil-producing states were allocated ₦120.759 billion as 13 percent derivation revenue.

The statement further revealed that ₦1.320 trillion came from statutory revenue, ₦515.391 billion from VAT, and ₦200 billion from augmentation.

“The total distributable revenue of ₦2.036 trillion was shared across the three tiers of government in line with established revenue-sharing formulas,” the communiqué stated.

From the statutory revenue component, the Federal Government received ₦632.260 billion, States got ₦320.691 billion, and Local Governments received ₦247.239 billion, while ₦120.759 billion was set aside for derivation.

In the VAT distribution, the Federal Government received ₦51.539 billion, States got ₦283.465 billion, and Local Governments received ₦180.387 billion.

The ₦200 billion augmentation was also shared, with the Federal Government receiving ₦105.360 billion, States ₦53.440 billion, and Local Governments ₦41.200 billion.

The communiqué highlighted an increase in gross statutory revenue, which rose to ₦1.699 trillion in March from ₦1.561 trillion recorded in February—an improvement of ₦137.914 billion.

“Companies Income Tax, Capital Gains Tax, Stamp Duties, and Excise Duties recorded notable increases, while Petroleum Profit Tax, Oil and Gas Royalties, and Import Duties witnessed declines,” the statement noted.

Meanwhile, gross VAT revenue dipped slightly to ₦664.425 billion from ₦668.450 billion in the previous month.

Deductions from the gross revenue included ₦81.084 billion as cost of collection and ₦246.872 billion for transfers, refunds, and savings.

The latest FAAC distribution underscores the dynamics of Nigeria’s revenue performance, with non-oil taxes showing resilience amid fluctuating oil-related earnings.