The Federal Government, the 36 states, and the 774 local government councils have shared a total of ₦2.036 trillion as Federation Account revenue for March 2026.
The revenue allocation was approved at the April 2026 meeting of the Federation Account Allocation Committee (FAAC), held in Abuja, according to an official statement issued on Wednesday by the Office of the Accountant General of the Federation.
The statement disclosed that the total distributable revenue for the month was made up of ₦1.320 trillion in statutory revenue, ₦515.391 billion from Value Added Tax (VAT), and an augmentation of ₦200 billion.
FAAC further revealed that total gross revenue available in March 2026 stood at ₦2.364 trillion. However, deductions for cost of collection amounted to ₦81.084 billion, while transfers, refunds, and savings came to ₦246.872 billion.
According to the communiqué, gross statutory revenue for March rose to ₦1.699 trillion, representing an increase of ₦137.914 billion compared to the ₦1.561 trillion recorded in February 2026.
The committee also noted that gross VAT revenue for the month stood at ₦664.425 billion, which was lower than the ₦668.450 billion generated in February by ₦4.025 billion.
From the total distributable revenue of ₦2.036 trillion, the Federal Government received ₦789.159 billion, while state governments got a combined ₦657.596 billion.
Local government councils received ₦468.826 billion, while oil-producing states were allocated ₦120.759 billion as 13 per cent derivation revenue from mineral proceeds.
A breakdown of the ₦1.320 trillion statutory revenue showed that the Federal Government received ₦632.260 billion. State governments got ₦320.691 billion, while local governments received ₦247.239 billion.
In addition, the benefiting states received ₦120.759 billion as derivation revenue from statutory receipts linked to mineral production.
From the ₦515.391 billion VAT revenue, the Federal Government received ₦51.539 billion, states got ₦283.465 billion, while local governments received ₦180.387 billion.
Similarly, from the ₦200 billion augmentation, the Federal Government was allocated ₦105.360 billion, the states received ₦53.440 billion, and local governments got ₦41.200 billion.
The FAAC communiqué also highlighted revenue performance across major tax and non-tax sources during the month under review.
It noted that collections from Companies Income Tax (CIT), Capital Gains Tax (CGT), Stamp Duties (SDT), and excise duties recorded significant increases in March.
However, receipts from Petroleum Profit Tax (PPT), Hydrocarbon Tax (HT), oil and gas royalties, Import Duty, and Common External Tariff (CET) declined considerably during the same period.
VAT receipts also recorded a marginal decrease compared to the previous month.
The latest revenue distribution underscores the continued importance of FAAC allocations to all three tiers of government, especially at a time when many states and local councils rely heavily on monthly disbursements to meet recurrent obligations and fund infrastructure development.
Analysts say the rise in statutory revenue may be linked to improved collections from non-oil sources and stronger fiscal enforcement, even as volatility in oil-related earnings continues to affect overall government revenues.
For state governments, the allocation provides critical fiscal support for salary payments, capital projects, healthcare delivery, education funding, and debt servicing.
Local governments are also expected to utilise their share for grassroots development, rural infrastructure, sanitation, and primary healthcare services.
The increase in Companies Income Tax and excise duty collections may also signal stronger corporate activity and improved compliance across some sectors of the economy.
However, the drop in oil-related revenues remains a concern, given Nigeria’s continued dependence on crude exports as a major source of foreign exchange and public finance.
Economic observers have repeatedly called for deeper diversification of government revenue through expanded taxation efficiency, industrial growth, agricultural exports, and digital economy reforms.
The March 2026 allocation represents one of the highest monthly FAAC disbursements in recent months and reflects the central role of the Federation Account in sustaining public sector operations across the country.
The Federation Account Allocation Committee meets monthly to share revenues accruing to the Federation Account among the Federal Government, states, and local governments in line with existing revenue-sharing formulas.
Its decisions remain closely watched by public finance managers, governors, council chairmen, and economic stakeholders because of their direct impact on budget implementation and service delivery nationwide.
