The Federation Account Allocation Committee disbursed a total of N2.04tn for March 2026, marking an increase of N150bn compared to the N1.89tn shared in February, driven largely by improved statutory revenue.
This was made known in a statement released on Wednesday by the Office of the Accountant-General of the Federation and signed by the Director of Press and Public Relations, Bawa Mokwa.
According to the statement, “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 N2.04tn consisted of N1.32tn from statutory sources, N515.39bn generated from Value Added Tax, and an additional N200bn provided as augmentation.
A breakdown of the allocation shows that the Federal Government received N789.16bn, representing about 38.8 per cent of the total. State governments got N657.60bn, accounting for 32.3 per cent, while local government councils received N468.83bn, or 23.0 per cent. Oil-producing states were allocated N120.76bn as derivation, making up roughly 5.9 per cent.
The communiqué further revealed that “total gross revenue of N2.364tn was available in the month of March 2026,” out of which N81.08bn was deducted as cost of collection, while N246.87bn went to transfers, refunds, and savings.
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Together, these deductions accounted for more than 13 per cent of the gross revenue, reflecting the scale of statutory obligations before final distribution.
From the N1.32tn statutory revenue, the Federal Government received N632.26bn, states were allocated N320.69bn, and local governments got N247.24bn, with N120.76bn set aside for derivation.
Similarly, out of the N515.39bn VAT pool, the Federal Government received N51.54bn, states got N283.47bn, and local governments received N180.39bn, highlighting the increasing role of consumption taxes in supporting subnational finances.
From the N200bn augmentation, the Federal Government received N105.36bn, while states and local governments got N53.44bn and N41.20bn respectively, indicating ongoing fiscal adjustments to stabilise monthly allocations.
On revenue performance, the communiqué stated that “gross statutory revenue of N1.699tn was received for the month of March 2026,” an increase of N137.91bn from the N1.56tn recorded in February, which largely accounted for the higher FAAC distribution.
However, VAT collections recorded a slight decline. The statement noted that “gross revenue of N664.425bn was available from the Value Added Tax in March 2026,” down by N4.025bn from the N668.450bn generated in February.
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The report also indicated significant increases in Companies Income Tax, Capital Gains Tax, Stamp Duties, and Excise Duty, suggesting stronger performance in non-oil tax revenue.
On the other hand, Petroleum Profit Tax, Hydrocarbon Tax, oil and gas royalties, import duties, and CET recorded notable declines, reflecting continued fluctuations in oil revenues and trade-related income, while VAT dipped slightly.
Overall, the latest FAAC figures show a growing contribution from non-oil taxes, even as instability in oil-related revenues continues to influence the size and consistency of monthly allocations across the three tiers of government.
