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

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

The small print have been disclosed on Tuesday in a press launch issued by Bawa Mokwa, Director of Press and Public Relations on the Workplace of the Accountant Normal of the Federation, following the April 2025 FAAC assembly held in Abuja.

The assertion learn, “A complete sum of N1.578 trillion, being March 2025 Federation Account Income, has been shared to the Federal Authorities, States, and the Native Authorities Councils.  

“The income was shared on the April 2025 Federation Account Allocation Committee (FAAC) assembly held in Abuja.” 

In response to the assertion, the distributable income comprised statutory income, Worth Added Tax (VAT), Digital Cash Switch Levy (EMTL), and change distinction earnings. Regardless of a modest rise in gross statutory inflows for the month, the ultimate distributable sum continued on a downward development, weighed down by diminished VAT and EMTL receipts.

Breakdown of March allocation 

Out of the N1.578 trillion shared, the Federal Authorities obtained N528.696 billion, state governments acquired N530.448 billion, and native authorities councils obtained N387.002 billion. An extra N132.611 billion was allotted to oil-producing states as 13% derivation income.

• Statutory income shaped the biggest share at N931.325 billion, from which the Federal Authorities obtained N422.485 billion, the states N214.290 billion, and native councils N165.209 billion. A derivation part of N129.341 billion was additionally drawn from statutory income.
• For VAT income, which totalled N593.750 billion, the Federal Authorities obtained N89.063 billion, the states N296.875 billion, and the native councils N207.813 billion. The Federal Authorities additionally obtained N3.746 billion from the N24.971 billion EMTL, whereas states and native governments obtained N12.485 billion and N8.740 billion, respectively.
• From the N28.711 billion in change distinction income, the Federal Authorities took N13.402 billion, the states N6.798 billion, and the native councils N5.241 billion. An extra N3.270 billion was disbursed as derivation income from this class.

Gross revenues see blended actions 

• The overall gross income obtainable in March 2025 stood at N2.411 trillion, from which N85.376 billion was deducted as the price of assortment and N747.180 billion for statutory transfers, refunds, and interventions. This left the distributable pool at N1.578 trillion, the bottom for the reason that begin of the yr.

• Whereas gross statutory income rose to N1.718 trillion in March, up from N1.653 trillion in February, VAT assortment fell. Gross VAT income declined from N654.456 billion in February to N637.618 billion in March, reflecting a shortfall of N16.838 billion.

FAAC attributed the decline in complete distributable income to reductions in oil and gasoline royalty, VAT, EMTL, excise responsibility, import responsibility, and Widespread Exterior Tariff (CET) levies.

Nonetheless, it famous that Petroleum Revenue Tax (PPT) and Firms Revenue Tax (CIT) recorded important progress throughout the month below evaluation.

With allocations declining for 3 straight months, issues are rising about fiscal sustainability, particularly for state and native governments that rely closely on these month-to-month disbursements for salaries and capital expenditure.