FAAC: FG, States, LGAs share N1.578tn March 2025 revenue as allocation falls for third straight month  

This marks the third consecutive drop in monthly allocation, down from N1.678 trillion in February and N1.703 trillion in January.

The details were disclosed on Tuesday in a press release issued by Bawa Mokwa, Director of Press and Public Relations at the Office of the Accountant General of the Federation, following the April 2025 FAAC meeting held in Abuja.

According to the statement, the distributable revenue comprised statutory revenue, Value Added Tax (VAT), Electronic Money Transfer Levy (EMTL), and exchange difference earnings. Despite a modest rise in gross statutory inflows for the month, the final distributable sum continued on a downward trend, weighed down by reduced VAT and EMTL receipts.

Out of the N1.578 trillion shared, the Federal Government received N528.696 billion, state governments got N530.448 billion, and local government councils received N387.002 billion. An additional N132.611 billion was allocated to oil-producing states as 13% derivation revenue.

FAAC attributed the decline in total distributable revenue to reductions in oil and gas royalty, VAT, EMTL, excise duty, import duty, and Common External Tariff (CET) levies.

However, it noted that Petroleum Profit Tax (PPT) and Companies Income Tax (CIT) recorded significant growth during the month under review.

With allocations declining for three straight months, concerns are growing about fiscal sustainability, especially for state and local governments that rely heavily on these monthly disbursements for salaries and capital expenditure.