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Daniel Adaji
A sharp decline in Value Added Tax (VAT), Electronic Money Transfer Levy (EMTL), and oil and gas royalties dragged the Federation Account allocation down to N1.578tn in March 2025 — its lowest level this year.
The Federation Account Allocation Committee (FAAC) disclosed this after its April meeting in Abuja on Tuesday, marking the third consecutive drop in monthly revenue shared among the three tiers of government. The March allocation fell from N1.678tn in February and N1.703tn in January.
FAAC attributed the drop in total distributable revenue to “reductions in oil and gas royalty, VAT, EMTL, excise duty, import duty, and Common External Tariff (CET) levies.” Despite a rise in gross statutory revenue, the combined impact of these shortfalls cut the total distributable pool.
“A total sum of N1.578, being March 2025 Federation Account Revenue, has been shared to the Federal Government, States, and the Local Government Councils,” FAAC disclosed.
Of this amount, the Federal Government received N528.696bn, the states N530.448bn, and local government councils N387.002bn. Oil-producing states got an additional N132.611bn as 13 per cent derivation revenue.
Statutory revenue accounted for the bulk of the allocation at N931.325bn. From this, the Federal Government received N422.485bn, states got N214.290bn, and local governments received N165.209bn. A derivation allocation of N129.341bn was also drawn from statutory revenue.
For VAT, which totaled N593.750bn, the Federal Government received N89.063bn, the states N296.875bn, and local governments N207.813bn.
The N24.971bn collected as EMTL was shared with the Federal Government receiving N3.746bn, states N12.485bn, and local councils N8.740bn.
Additionally, the N28.711bn in exchange difference revenue was distributed with the Federal Government receiving N13.402bn, states N6.798bn, and local governments N5.241bn. A derivation sum of N3.270bn was also drawn from this category.
Total gross revenue available in March stood at N2.411tn. After deductions of N85.376bn for collection costs and N747.180bn for statutory transfers, refunds, and interventions, N1.578tn remained for distribution.
While Petroleum Profit Tax (PPT) and Companies Income Tax (CIT) showed significant growth, they were not enough to offset revenue declines in other key areas.