Federal Government, States, and Local Councils Share N2.036 Trillion in March Federation Account Revenue
The Federation Account Allocation Committee (FAAC) has disclosed that the federal government, states, and local government councils shared a total of N2.036 trillion as distributable revenue for March 2026. The figure, released by the Office of the Accountant General of the Federation, reflects a notable increase in statutory revenue, though VAT collections dipped slightly compared to the previous month.
According to the statement issued by FAAC spokesperson Bala Mokwa, the total distributable revenue comprised N1.320 trillion in statutory revenue, N515.391 billion from Value Added Tax (VAT), and N200 billion in augmentation funding. Gross statutory revenue for March reached N1.699 trillion, marking a rise of N137.914 billion from February’s N1.561 trillion. In contrast, VAT revenue declined marginally to N664.425 billion, down by N4.025 billion from the previous month.
The allocation breakdown shows the federal government received N789.159 billion, states were allocated N657.596 billion, and local government councils received N468.826 billion. Additionally, oil-producing states benefited from N120.759 billion as 13 percent derivation revenue.
A detailed breakdown of statutory revenue allocations reveals that the federal government received N632.260 billion, states got N320.691 billion, and local councils received N247.239 billion. The derivation fund of N120.759 billion was also distributed to benefit states. From the VAT pool, the federal government received N51.539 billion, states got N283.465 billion, and local governments were allocated N180.387 billion. The N200 billion augmentation was shared as follows: federal government N105.360 billion, states N53.440 billion, and local councils N41.200 billion.
Revenue performance analysis indicates that Companies Income Tax (CIT), Capital Gains Tax (CGT), Stamp Duties (SDT), and Excise Duty recorded significant increases during the period. However, Petroleum Profit Tax (PPT), Hydrocarbon Tax (HT), oil and gas royalties, import duty, and Common External Tariff (CET) experienced declines, while VAT saw a marginal drop.
This distribution underscores the ongoing fiscal flows between federal, state, and local governments, reflecting both the strengths and challenges in Nigeria’s revenue generation framework. The slight decline in VAT collections may prompt further review of consumption patterns and economic activity, while the robust performance in corporate and capital gains taxes signals resilience in the formal sector.
As FAAC continues to oversee the equitable distribution of federation account revenues, stakeholders will be monitoring trends in key tax heads and the impact of economic policies on overall revenue performance in the coming months.
