The Federation Account Allocation Committee (FAAC) distributed N2.036 trillion as the March 2026 revenue allocation to the federal government, state governments, and local councils. The breakdown showed N1.320 trillion in statutory revenue, N515.391 billion from value-added tax (VAT), and N200 billion in augmentation. Gross statutory revenue increased to N1.699 trillion in March, up from N1.561 trillion in February, while VAT revenue fell slightly to N664.425 billion from N668.450 billion the previous month. The federal government received N789.159 billion, states were allocated N657.596 billion, and local government councils got N468.826 billion. Oil-producing states received N120.759 billion as 13 percent derivation revenue.
From the statutory revenue, the federal government got N632.260 billion, states received N320.691 billion, and local councils were given N247.239 billion. The VAT allocation saw the federal government receive N51.539 billion, states N283.465 billion, and local councils N180.387 billion. The N200 billion augmentation was shared with N105.360 billion to the federal government, N53.440 billion to states, and N41.200 billion to local councils. Revenue from Companies Income Tax, Capital Gains Tax, Stamp Duties, and Excise Duty rose, while Petroleum Profit Tax, Hydrocarbon Tax, oil and gas royalties, import duty, Common External Tariff, and VAT declined marginally.
The federal government took home nearly half of the total revenue despite VAT and key oil-related taxes declining, raising questions about fiscal sustainability. States and local councils received less than 56 percent of the total share, even as they bear growing responsibilities for public service delivery. Oil-producing states got N120.759 billion in derivation, yet no detail was provided on how this aligns with actual production volumes. The rise in non-oil tax receipts offers a sliver of hope, but reliance on volatile sources remains evident.
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