The Federation Account Allocation Committee (FAAC) has announced a total allocation of ₦1.578 trillion for the month of March 2025.
This revenue will be shared among the Federal Government, State Governments, and Local Government Councils (LGCs), marking the third consecutive month of declining allocations.
The revenue allocation was broken down into different categories, including statutory revenue, Value Added Tax (VAT), the Electronic Money Transfer Levy (EMTL), and exchange difference revenue. The breakdown revealed that statutory revenue accounted for the largest share of the allocation, totaling ₦931.325 billion. VAT contributed ₦593.750 billion, while EMTL brought in ₦24.971 billion, and exchange difference revenue amounted to ₦28.711 billion.
The Federal Government’s share of the allocation was ₦528.696 billion, with contributions from statutory revenue, VAT, EMTL, and exchange difference. State Governments received a total of ₦530.448 billion, which includes both statutory revenue and VAT as the primary sources of funding. Local Government Councils were allocated ₦387.002 billion, combining statutory revenue, VAT, EMTL, and exchange difference.
An additional ₦132.611 billion was allocated as derivation revenue, representing 13% of the mineral revenue, and will be distributed to the states that benefit from this fund. Despite the decrease in the total allocation, this part of the distribution remains vital for states in resource-rich regions.
The FAAC meeting, which led to this allocation, was chaired by the Honourable Minister of Finance and Coordinating Minister of the Economy, Wale Edun. Key stakeholders, including the Accountant-General of the Federation and representatives from the Central Bank of Nigeria, were also in attendance.
This latest allocation marks a continued trend of declining revenue, following a pattern seen in the previous months. However, the FAAC committee remains committed to ensuring the equitable distribution of Nigeria’s federal revenues among all tiers of government, and it is expected that this distribution will continue to play a vital role in financing state and local government activities throughout the country.
