By Emma Ombugadu, Northern Operation
The Federation Account Allocation Committee (FAAC) disbursed a total of N2.04 trillion as revenue for March 2026, marking a N150 billion increase from the N1.89 trillion shared in February, buoyed by improved statutory inflows.
Details of the allocation were contained 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.
Mokwa stated that, “A total sum of N2.036tn, being March 2026 Federation Account Revenue, has been shared to the Federal Government, States and the Local Government Councils,” following the April 2026 FAAC meeting held in Abuja.
The distributable revenue of N2.04 trillion comprised N1.32 trillion from statutory sources, N515.39 billion from Value Added Tax (VAT), and N200 billion as augmentation.
A breakdown of the disbursement showed that the Federal Government received N789.16 billion (38.8 per cent), states got N657.60 billion (32.3 per cent), and local government councils received N468.83 billion (23.0 per cent). Oil-producing states were allocated N120.76 billion as derivation, representing about 5.9 per cent of the total.
According to the FAAC communiqué, “total gross revenue of N2.364tn was available in the month of March 2026,” out of which N81.08 billion was deducted as cost of collection, while N246.87 billion went to transfers, refunds and savings.
These deductions—amounting to over 13 per cent of gross inflows—underscore the scale of statutory obligations settled before revenue distribution.
From the N1.32 trillion statutory revenue, the Federal Government received N632.26 billion, states got N320.69 billion, and local governments received N247.24 billion, with N120.76 billion set aside as derivation.
From the N515.39 billion VAT pool, the Federal Government received N51.54 billion, states got N283.47 billion, and local governments received N180.39 billion, highlighting the growing role of consumption taxes in subnational financing.
Similarly, from the N200 billion augmentation, the Federal Government received N105.36 billion, states got N53.44 billion, and local governments received N41.20 billion—an indication of ongoing fiscal adjustments to stabilise monthly allocations.
On revenue performance, the communiqué noted that “gross statutory revenue of N1.699tn was received for the month of March 2026,” an increase of N137.91 billion compared to the N1.56 trillion recorded in February. This rise largely drove the higher FAAC distribution, offsetting weaker VAT inflows.
VAT collections, however, dipped slightly. “Gross revenue of N664.425bn was available from the Value Added Tax in March 2026,” the statement said, down by N4.025 billion from the N668.450 billion recorded in February.
The statement added that Companies Income Tax, Capital Gains Tax, Stamp Duties, and Excise Duty recorded significant increases, pointing to improved non-oil tax performance.
In contrast, Petroleum Profit Tax, Hydrocarbon Tax, oil and gas royalties, import duties, and Common External Tariff receipts declined sharply, reflecting persistent volatility in oil revenues and trade-related income streams.
Overall, the March FAAC outcome highlights a strengthening non-oil revenue base, even as fluctuations in oil-related earnings continue to shape the size and stability of monthly allocations across the three tiers of government.
