The Federation Accounts Allocation Committee (FAAC) has distributed a total of N1.68 trillion to the three tiers of government for March 2025.
According to a communiqué issued at the conclusion of the FAAC meeting held in Abuja and chaired by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, total revenue available for distribution in February 2025 fell below the previous month’s allocation.
The gross statutory revenue of N1.65 trillion shared in March was N194.66 billion lower than the N1.85 trillion recorded in January.
A notable drop in VAT collections contributed to the decline with February VAT revenue falling by N117.43 billion to N654.46 billion, down from N771.89 billion in January.
Other major tax categories also underperformed. Declines were reported in revenue from PPT, CIT, excise duties, and import duties, further weakening the overall inflow into the federation account.
Of the N1.678 trillion distributed, statutory revenue accounted for N827.63 billion, VAT for N609.43 billion, electronic money transfer levy (EMTL) for N35.17 billion, solid minerals revenue for N28.22 billion, and an augmentation of N178 billion to cushion the effect of the revenue shortfall.
From the total distributable amount, the Federal Government received N569.66 billion, while the state governments shared N562.20 billion. Local government councils were allocated N410.56 billion.
Also, N136.04 billion, representing 13 percent of mineral revenue, was shared with oil-producing states as derivation revenue.
Breakdown of the statutory revenue showed the Federal Government receiving N366.26 billion, state governments receiving N185.77 billion, and local governments receiving N143.22 billion. An additional N132.37 billion from mineral revenue derivation was disbursed to the relevant states.
From the VAT pool of N609.43 billion, the Federal Government received N91.42 billion, state governments received N304.72 billion, and local governments got N213.30 billion.
Gross revenue for February stood at N2.344 trillion, out of which N89.09 billion was deducted as the cost of collection. A further N577.10 billion was set aside for transfers, interventions, refunds, and savings.
The meeting was also attended by the newly appointed Accountant General of the Federation, Shamsudeen Ogunjimi, marking his first official appearance at the monthly revenue allocation session.
With declining collections across major tax lines and persistent pressure from macroeconomic headwinds, fiscal authorities are expected to review strategies to improve non-oil revenue performance and stabilise government financing across all levels.
Market observers have noted that while the current disbursement may support basic government operations, sustained weakness in tax collections could affect budget execution and developmental planning in the months ahead.
