Federal, state, and local governments in Nigeria have received a total of N2.04 trillion from the Federation Account Allocation Committee (FAAC) for March 2026, marking an increase of N150 billion compared to the previous month. The allocation reflects improved revenue inflows, primarily driven by higher crude oil production and stronger non-oil receipts.
According to the official communiqué issued by FAAC after its April meeting, gross statutory revenue for the month stood at N1.68 trillion, up from N1.53 trillion in February. Value Added Tax (VAT) collections contributed an additional N360 billion, while exchange rate gains and other revenues added further to the distributable pool.
The federal government received N327.7 billion from the statutory allocation, while states and local governments were allocated N166.2 billion and N128.2 billion respectively. VAT proceeds were shared in the ratio of 15 per cent to the federal government, 50 per cent to states, and 35 per cent to local governments.
Officials attributed the revenue growth to improved crude oil output, which averaged 1.5 million barrels per day in March, and enhanced compliance in VAT remittances. The increase comes amid ongoing efforts by the Nigerian government to stabilise public finances and fund critical infrastructure projects across the country.
State governors have welcomed the higher allocation, noting that it will help address pressing fiscal obligations, including salary payments and capital expenditure. However, analysts caution that sustained revenue growth will depend on continued stability in oil production and broader diversification of the economy.
The FAAC meeting also reviewed the performance of the Excess Crude Account and the Stabilisation Account, both of which remain critical buffers against global oil price volatility. With global energy markets showing signs of recovery, Nigeria’s fiscal authorities are hopeful that the positive trend in revenue mobilisation will continue in the coming months.
