The Federation Account Allocation Committee has reported a further decline in monthly disbursements to the Federal Government, states, and local government councils, with a total of N1.578tn shared as March 2025 revenue.
This marks the third consecutive monthly drop in allocations this year, following N1.678tn shared in February and N1.703tn in January.
This was disclosed in a press statement issued on Tuesday by the Director of Press and Public Relations, Office of the Accountant General of the Federation, Bawa Mokwa, following the April FAAC meeting held in Abuja.
According to the statement, the N1.578tn shared was made up of N931.325bn from statutory revenue, N593.750bn from Value Added Tax, N24.971bn from the Electronic Money Transfer Levy, and N28.711bn from exchange difference revenue.
The statement read, “A total sum of N1.578tn, being March 2025 Federation Account Revenue, has been shared to the Federal Government, States and the Local Government Councils.
“The revenue was shared at the April 2025 Federation Account Allocation Committee meeting held in Abuja.”
From the total distributable sum, the Federal Government received N528.696bn, while state governments received N530.448bn.
The local government councils got N387.002bn, while N132.611bn was distributed to oil-producing states as 13 per cent derivation revenue.
Further breakdown showed that from the N931.325bn statutory revenue, the Federal Government received N422.485bn, states got N214.290bn, and local governments received N165.209bn.
A total of N129.341bn was shared as derivation revenue to the benefiting states. From the N593.750bn VAT revenue, the Federal Government received N89.063bn, states received N296.875bn, and local governments got N207.813bn.
For the EMTL component, the Federal Government received N3.746bn, the states N12.485bn, and the local governments N8.740bn.
From the N28.711bn exchange difference, N13.402bn went to the Federal Government, N6.798bn to the states, and N5.241bn to local governments, while N3.270bn was shared to oil-producing states as derivation.
The committee stated that a gross revenue of N2.411tn was available in March, while N85.376bn was deducted as cost of collection and N747.180bn went for transfers, refunds, and other interventions.
Although gross statutory revenue increased from N1.653tn in February to N1.718tn in March, VAT collections declined from N654.456bn to N637.618bn.
FAAC noted that Petroleum Profit Tax and Companies Income Tax recorded significant increases during the month.
However, revenues from oil and gas royalty, VAT, EMTL, excise duty, import duty, and CET levies declined.
The consistent fall in allocations may heighten concerns over the fiscal stability of subnational governments, especially in the face of rising inflation and growing expenditure obligations.(Punch)
