FAAC disbursement to FG, subnationals down 1.5% to N1.578trn in March

Onome Amuge

Nigeria’s Federation Accounts Allocation Committee (FAAC) disbursed a total of N1.578 trillion to the federal, state, and local governments in April, drawing from revenues generated in March 2025. The March allocation, roughly N25 billion lower than February’s payout, represents a 1.5 percent decline compared to the N$1.678 trillion allocated in the preceding month of February, according to a communiqué released following the FAAC meeting held in Abuja.

The total distributable revenue comprised N931.325 billion in statutory revenue, N593.750 billion from Value Added Tax (VAT), N24.971 billion from the Electronic Money Transfer Levy (EMTL), and N28.711 billion attributed to exchange rate differences.

Gross revenue for March stood at N2.411 trillion, from which N85.376 billion was deducted for collection costs, while N747.180 billion was allocated for transfers, interventions, and refunds.  

A closer look at the revenue streams reveals a mixed performance. This is as gross statutory revenue saw an uptick, reaching N1.718 trillion in March, a N65.422 billion increase from the N1.653 trillion recorded in February. 

Conversely, gross VAT revenue experienced a N16.838 billion decline, falling to N637.618 billion in March from N654.456 billion in the previous month, 

The breakdown of the N1.578 trillion distributable revenue shows the federal government receiving N528.696 billion, while state governments collectively received N530.448 billion. Local government areas were allocated a total of N387.002 billion.In addition, N132.611 billion, representing 13 percent of mineral revenue, was distributed to the benefiting states as derivation revenue.  

Further analysis of the statutory revenue distribution indicates the federal government received N422.485 billion, states N214.290 billion, and local governments N165.209 billion. Derivation revenue from this stream amounted to N129.341 billion.  

From the VAT pool, the federal government received N89.063 billion, states N296.875 billion, and local governments N207.813 billion.

The Electronic Money Transfer Levy contributed N3.746 billion to the federal government, N12.485 billion to the states, and N8.740 billion to local government areas.

Meanwhile, the exchange difference revenue was shared with the federal government receiving N13.402 billion, states N6.798 billion, local governments N5.241 billion, and N3.270 billion allocated as derivation revenue.