FAAC Distributes N2.036tr March Revenue to Fed, State, and LG
By Patience Ikpeme
The Federation Account Allocation Committee (FAAC) concluded its April 2026 meeting with the distribution of N2.036 trillion in total revenue to the three tiers of government, following a month of notable fluctuations in the country’s primary income streams.
The distributed funds represent the revenue generated in March 2026. According to a statement issued by Bawa Mokwa, the Director of Press and Public Relations at the Office of the Accountant General of the Federation (OAGF), the revenue pool consisted of several distinct components.
“The N2.036 trillion total distributable revenue comprised distributable statutory revenue of N1.320 trillion, distributable Value Added Tax (VAT) revenue of N515.391 billion and Augmentation of N200 billion,” Mokwa stated.
The communiqué issued at the end of the meeting indicated that the total gross revenue available for the month of March stood at N2.364 trillion. However, after accounting for a cost of collection totaling N81.084 billion and transfers, refunds, and savings amounting to N246.872 billion, the final figures were adjusted to include a N200 billion augmentation to reach the distributed total.
Statutory revenue showed growth during the period, reaching N1.699 trillion. This represents an increase of N137.914 billion over the N1.561 trillion reported in February 2026. In contrast, Value Added Tax collections saw a slight decline. The gross VAT revenue available in March was N664.425 billion, which was N4.025 billion lower than the previous month’s N668.450 billion.
From the total distributable pool of N2.036 trillion, the Federal Government received N789.159 billion, while the State Governments were allocated N657.596 billion. The Local Government Councils received N468.826 billion, and an additional N120.759 billion—representing 13 percent of mineral revenue—was shared among the benefiting states as derivation revenue.
A more detailed breakdown of the N1.320 trillion distributable statutory revenue shows the Federal Government took N632.260 billion, the States received N320.691 billion, and Local Governments received N247.239 billion.
Regarding the N515.391 billion in distributable VAT, the communiqué noted: “The Federal Government received N51.539 billion, the State Governments received N283.465 billion and the Local Government Councils received N180.387 billion.”
The N200 billion augmentation was also divided among the tiers, with the Federal Government receiving N105.360 billion, the States receiving N53.440 billion, and the Local Governments receiving N41.200 billion.
The month of March 2026 saw varying performance across different tax heads. Companies Income Tax (CIT), Capital Gains Tax (CGT), Stamp Duties (SDT), and Excise Duty all recorded significant increases. Conversely, several oil-related and trade revenues saw a downturn. Petroleum Profit Tax (PPT), Hydrocarbon Tax (HT), Oil and Gas Royalty, Import Duty, and Common External Tariff (CET) decreased considerably, while Value Added Tax saw a marginal dip.
