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TimeTestedInfo ||Nigeria’s revenue distribution drops in Feb as FAAC shares N1.678 trln amid revenue fluctuations

Nigeria’s Federation Account Allocation Committee (FAAC) distributed N1.678 trillion to the federal, state, and local governments in March 2025, reflecting a decrease from the previous month’s allocation.

This distribution, drawn from a gross revenue of N2.344 trillion for February 2025, highlights ongoing fluctuations in the nation’s revenue streams.

The FAAC meeting, chaired by Minister of Finance and Coordinating Minister of the Economy, Wale Edun, and attended by Accountant General of the Federation, Shamseldeen Ogunjimi, revealed a total deduction of N89.092 billion for collection costs and N577.097 billion for transfers, interventions, refunds, and savings.

The total distributable revenue of N1.678 trillion comprised:

Distributable statutory revenue: N827.633 billion

Distributable Value Added Tax (VAT) revenue: N609.430 billion

Electronic Money Transfer Levy (EMTL) revenue: N35.171 billion

Solid minerals revenue: N28.218 billionAugmentation: N178 billion

This month’s distribution is N194.664 billion lower than the N1.848 trillion shared in February 2025. Notably, VAT revenue decreased by N117.430 billion, falling from N771.886 billion to N654.456 billion.

Breakdown of the N1.678 trillion distribution:

Federal Government: N569.656 billion

State Governments: N562.195 billion

Local Government Councils: N410.559 billion

Oil-producing states (derivation revenue): N136.042 billion.

Further analysis indicated that while oil and gas royalty and EMTL revenues saw significant increases, VAT, Petroleum Profit Tax (PPT), Companies Income Tax (CIT), Excise Duty, Import Duty, and CET Levies declined.

The fluctuation in revenue distribution underscores the ongoing economic adjustments in Nigeria, as the government navigates varying revenue streams and financial demands.