Incoming Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, officially presided over his first Federation Account Allocation Committee (FAAC) meeting on Wednesday where the Federal, state and local governments shared a total of N2.036 trillion from the Federation Account for March 2026.
This is Oyedele’s first assignment as Chair of FAAC as Minister and the second time this year that the FAAC disbursement to all beneficiaries will surpass the ₦2 trillion mark.
Details of the distribution were contained in a statement issued by the Office of the Accountant General of the Federation and signed by its Director of Press and Public Relations, Bawa Mokwa. The statement explained that the amount shared was made up of statutory revenue, Value Added Tax collections and an additional support provision.
According to the statement, “The N2.036 trillion total distributable revenue comprised distributable statutory revenue of N1.320 trillion, distributable Value Added Tax (VAT) revenue of N515.391 billion and augmentation of N200 billion.”
The committee said total revenue inflow for March stood at N2.364 trillion before deductions. From this amount, N81.084 billion was removed as the cost of collection, while N246.872 billion went to transfers, refunds and savings.
Revenue from statutory sources rose during the month to N1.699 trillion in March, compared to N1.561 trillion recorded in February, reflecting an improvement of over N137 billion. In contrast, VAT collections recorded a slight drop to N664.425 billion in March, marginally lower than the N668.450 billion in February.
From the total distributable amount of N2.036 trillion, the Federal Government received N789.159 billion, while state governments got N657.596 billion. Local government councils were allocated N468.826 billion. In addition, oil-producing states received N120.759 billion as derivation revenue, representing 13 per cent of mineral earnings.
A further breakdown showed that from the statutory revenue component of N1.320 trillion, the Federal Government got N632.260 billion, states received N320.691 billion, and local governments were allocated N247.239 billion, with the derivation share remaining N120.759 billion for eligible states.
For VAT, the Federal Government received N51.539 billion out of the N515.391 billion distributed, while states received N283.465 billion and local councils got N180.387 billion.
The N200 billion augmentation was also shared among the three tiers of government, with the Federal Government receiving N105.360 billion, states getting N53.440 billion and local governments receiving N41.200 billion.
The FAAC communiqué also indicated mixed performance across revenue sources during the period. It noted increases in collections from Companies Income Tax, Capital Gains Tax, Stamp Duties and Excise Duties. However, revenue from Petroleum Profit Tax, Hydrocarbon Tax, oil and gas royalties, import duties and the Common External Tariff declined, while VAT collections recorded a slight decrease.
