The Federation Account Allocation Committee (FAAC) has shared N2.036 trillion among the three tiers of government for March 2026, reflecting a mix of rising tax revenues and declining oil-related earnings.
How the funds were shared
The allocation was finalised in Abuja during FAAC’s monthly meeting chaired by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele.
According to a communiqué issued after the meeting, the federal government received N789.159 billion, states got N657.596 billion, while local government councils were allocated N468.826 billion.
Oil-producing states also received N120.759 billion as 13 per cent derivation revenue.
Breakdown of revenue sources
The distributable sum of N2.036 trillion was drawn from a gross revenue of N2.364 trillion.
This included N1.320 trillion from statutory revenue, N515.391 billion from Value Added Tax (VAT), and an augmentation of N200 billion.
From statutory revenue alone, the federal government received N632.260 billion, states got N320.691 billion, while local governments received N247.239 billion.
VAT distribution details
Out of the N515.391 billion VAT pool, the federal government received N51.539 billion, states were allocated N283.465 billion, and local governments got N180.387 billion.
Revenue performance shows mixed trends
The communiqué revealed that gross statutory revenue rose to N1.699 trillion in March, an increase of N137.914 billion compared to February’s N1.561 trillion.
However, VAT revenue dipped slightly to N664.425 billion, down by N4.025 billion from the previous month.
From the total revenue, N81.084 billion was deducted as cost of collection, while N246.872 billion was set aside for transfers, refunds, and savings.
Taxes rise, oil earnings fall
In terms of performance, Companies Income Tax (CIT), Capital Gains Tax (CGT), Stamp Duties, and Excise Duties recorded notable increases.
On the other hand, Petroleum Profit Tax (PPT), Hydrocarbon Tax, Oil and Gas Royalties, Import Duty, and Common External Tariff (CET) declined. VAT collections also recorded a slight drop.
The latest FAAC allocation highlights ongoing shifts in Nigeria’s revenue structure, with stronger tax contributions offsetting weaker oil inflows, a trend that continues to shape latest Nigerian news and breaking news Nigeria today.