The Federation Account Allocation Committee (FAAC) has disbursed a total of N2.036 trillion to the Federal Government, 36 states and local government councils as revenue for March 2026.
The distribution was approved at the April FAAC meeting held in Abuja, covering earnings from statutory revenue, Value Added Tax (VAT) and augmentation funds.
According to the FAAC communiqué, total distributable revenue for the month stood at N2.036 trillion. This comprised N1.320 trillion from statutory revenue, N515.391 billion from VAT, and an additional N200 billion in augmentation.
Gross revenue available for March was N2.364 trillion. However, deductions of N81.084 billion for cost of collection and N246.872 billion for transfers, refunds and savings reduced the final distributable amount.
A closer look at the revenue streams shows a mixed performance. Statutory revenue rose to N1.699 trillion in March, up by N137.914 billion from N1.561 trillion recorded in February. In contrast, VAT collections dipped slightly to N664.425 billion from N668.450 billion in the previous month.
From the total distributable pool, the Federal Government received N789.159 billion, state governments got N657.596 billion, while local government councils were allocated N468.826 billion. In addition, N120.759 billion, representing 13 per cent derivation revenue, was shared among eligible oil-producing states.
Further breakdown shows that from statutory revenue alone, the Federal Government received N632.260 billion, states got N320.691 billion, and local governments received N247.239 billion. VAT revenue continued to favour states, which received the largest share among the three tiers.
Revenue performance across key sources remained uneven. Collections from Companies’ Income Tax, Capital Gains Tax, Stamp Duties and Excise Duty recorded notable increases. However, Petroleum Profit Tax, Hydrocarbon Tax, oil and gas royalties, import duty and the Common External Tariff declined significantly. VAT also recorded a marginal drop.
Despite the dips in some revenue lines, the N200 billion augmentation helped bolster the overall distributable pool for the month.
Recent data indicate a continuing upward trend in allocations. In February 2026, FAAC disbursements rose compared to January, with net allocations to the 36 states reaching N784.29 billion.
VAT remains a major driver of allocations, particularly to states, reflecting the growing importance of non-oil revenue sources such as taxes and customs duties in supporting government finances.
