FAAC Distributes N1.578 Trillion for March 2025 as Revenue Allocations Decline for Third Consecutive Month

 

FAAC Distributes N1.578 Trillion for March 2025 as Revenue Allocations Decline for Third Consecutive Month

The Federation Account Allocation Committee (FAAC) has distributed a total of N1.578 trillion among the Federal Government, states, and local government areas for March 2025. 

This marks the third consecutive monthly decline in revenue allocations this year, with the March figure dropping from N1.678 trillion in February and N1.703 trillion in January.

Breakdown of March 2025 Allocation:

Statutory Revenue: N931.325 billion

Value Added Tax (VAT): N593.750 billion

Electronic Money Transfer Levy (EMTL): N24.971 billion

Exchange Difference Revenue: N28.711 billion.

From the total distributable sum:

The Federal Government received N528.696 billion

State governments received N530.448 billion

Local government councils got N387.002 billion

Oil-producing states received N132.611 billion as 13% derivation revenue.

The gross revenue available for March was N2.411 trillion. After deductions for collection costs (N85.376 billion) and transfers, interventions, and refunds (N747.180 billion), the distributable amount stood at N1.578 trillion.

Trend and Context:

Despite the gross statutory revenue for March (N1.718 trillion) being higher than February's (N1.653 trillion), the overall distributable amount has continued to decline, largely due to higher deductions and lower VAT revenue. VAT collections for March were N637.618 billion, down from N654.456 billion in February.

This downward trend comes after a record year in 2024, when FAAC allocations soared by 43% to N15.26 trillion, driven by fiscal reforms such as fuel subsidy removal and foreign exchange adjustments.