The Federation Account Allocation Committee (FAAC) has disbursed a total of ₦1.578 trillion among the three tiers of government for the month of March 2025. This was disclosed in a communiqué released by the Director of Press and Public Relations, Office of the Accountant-General of the Federation, Bawa Mokwa, on Saturday.
According to the communiqué, the total distributable revenue comprised ₦931.325 billion in statutory revenue and ₦593.750 billion from Value Added Tax (VAT). Also included were revenues from the Electronic Money Transfer Levy (EMTL) and exchange rate gains.
Breakdown of the allocation shows that the Federal Government received ₦528.69 billion, states received ₦530.44 billion, and local government councils got ₦387.002 billion. Oil-producing states received an additional ₦132.611 billion as derivation—representing 13% of mineral revenue.
A total of ₦85.37 billion was earmarked for the cost of collection, while ₦747.180 billion was allocated for transfers, interventions, and refunds.
The communiqué highlighted a drop in VAT revenue for March. Gross VAT stood at ₦637.618 billion, a decrease of ₦16.838 billion or 2.57% from the ₦654.456 billion recorded in February.
After deducting ₦25.505 billion for collection costs and ₦18.363 billion for transfers and refunds, ₦593.750 billion was distributed as follows: ₦89.063 billion to the Federal Government, ₦296.875 billion to states, and ₦207.813 billion to local governments.
Gross statutory revenue saw a modest increase, rising to ₦1.718 trillion from ₦1.653 trillion in the previous month—an uptick of ₦65.422 billion or 3.93%. Of this, ₦58.831 billion went to the cost of collection, and ₦728.817 billion was allocated for transfers and refunds. The remaining ₦931.325 billion was shared among the federal (₦422.485 billion), state (₦214.290 billion), and local governments (₦165.209 billion), while ₦129.341 billion was paid out as derivation to oil-producing states.
Additionally, ₦26.011 billion from EMTL was distributed, with the Federal Government receiving ₦3.746 billion, states ₦12.485 billion, and local governments ₦8.740 billion. A separate ₦1.040 billion was spent on collection costs.
From the exchange difference, ₦28.71 billion was also shared: ₦13.40 billion to the federal government, ₦6.79 billion to states, ₦5.241 billion to local governments, and ₦3.270 billion to oil-producing states.
The communiqué also noted increases in Petroleum Profit Tax (PPT) and Companies Income Tax (CIT), while oil and gas royalties, VAT, EMTL, excise duties, import duties, and Common External Tariff (CET) levies recorded declines.
On the currency front, the naira showed mixed signals. It appreciated slightly in the parallel market, trading at ₦1,618 per dollar on Tuesday compared to ₦1,620 on Monday. However, in the Nigerian Foreign Exchange Market (NFEM), the naira depreciated to ₦1,604 per dollar from ₦1,599 the previous day—reflecting a ₦5 drop.
As a result, the gap between the parallel market and NFEM exchange rates narrowed from ₦21 to ₦14 per dollar.
Despite ongoing fluctuations, analysts say the narrowing gap signals efforts by monetary authorities to harmonize exchange rates and stabilize the naira.
