FG, States, LGs Share ₦2.04tn March Revenue — FAAC

The Federation Account Allocation Committee (FAAC) has shared a total of N2.04tn as revenue for March 2026, reflecting an increase of N150bn from the N1.89tn distributed in February, driven by stronger statutory inflows.

This was disclosed in a statement issued on Wednesday by the Office of the Accountant-General of the Federation and signed by its Director of Press and Public Relations, Bawa Mokwa.

According to the statement, “a total sum of N2.036tn, being March 2026 Federation Account revenue, has been shared to the Federal Government, states, and local government councils,” following the April 2026 FAAC meeting held in Abuja.

The N2.04tn distributable revenue comprised:

N1.32tn from statutory revenue

N515.39bn from Value Added Tax (VAT)

N200bn as augmentation

Distribution Breakdown

A breakdown shows that:

The Federal Government received N789.16bn (38.8%)

States received N657.60bn (32.3%)

Local government councils received N468.83bn (23.0%)

Oil-producing states received N120.76bn as derivation (5.9%)

Revenue and Deductions

The communiqué noted that “total gross revenue of N2.364tn was available in March 2026.” 

From this:N81.08bn was deducted as the cost of collection

N246.87bn was allocated to transfers, refunds, and savings

Combined, these deductions accounted for over 13% of gross inflows, underscoring the scale of statutory obligations prior to distribution.

Component Allocations

From the N1.32tn statutory revenue:

Federal Government: N632.26bn

States: N320.69bn

Local governments: N247.24bn

Derivation: N120.76bn

From the N515.39bn VAT pool:

Federal Government: N51.54bn

States: N283.47bn

Local governments: N180.39bn

From the N200bn augmentation:

Federal Government: N105.36bn

States: N53.44bn

Local governments: N41.20bn

These allocations suggest continued fiscal adjustments aimed at stabilising monthly disbursements.

Revenue Performance

Gross statutory revenue rose to N1.699tn in March 2026, an increase of N137.91bn from N1.56tn recorded in February. This growth largely drove the higher FAAC distribution, offsetting weaker VAT inflows.

However, VAT collections declined slightly. 

The statement noted that “gross VAT revenue of N664.425bn was available in March 2026,” compared to N668.450bn in February—a decrease of N4.025bn.

Tax Trends

The statement highlighted significant increases in:

Companies Income Tax (CIT)

Capital Gains Tax (CGT)

Stamp Duties

Excise Duty

This points to improved performance in non-oil tax revenues.

In contrast, the following recorded notable declines:

Petroleum Profit Tax (PPT)

Hydrocarbon Tax

Oil and gas royalties

Import duties

Common External Tariff (CET)

VAT also recorded a marginal decrease.

Outlook

The latest FAAC outcome indicates that while non-oil tax revenues are strengthening, fluctuations in oil-related income continue to influence the size and stability of monthly allocations to the three tiers of government.

Source: Punch newspapers