The Federation Account Allocation Committee (FAAC) has disbursed a total of ₦1.578 trillion among the federal, state, and local governments for March 2025. This was revealed in a communiqué issued by FAAC and shared by Bawa Mokwa, Director of Press and Public Relations at the Office of the Accountant-General of the Federation.
The revenue distribution included ₦931.325 billion in statutory revenue and ₦593.750 billion from Value Added Tax (VAT). Mohammed Manga, Director of Information at the Ministry of Finance, stated that the gross revenue comprised statutory revenue, VAT, the Electronic Money Transfer Levy (EMTL), and exchange rate differences.
Here’s how the funds were allocated:
- Federal Government: ₦528.69 billion
- State Governments: ₦530.44 billion
- Local Government Councils: ₦387.002 billion
- Oil-Producing States (13% derivation): ₦132.611 billion
- Cost of Collection: ₦85.37 billion
- Transfers, Interventions, and Refunds: ₦747.180 billion
VAT Revenue and Statutory Revenue Breakdown
Gross VAT revenue for March stood at ₦637.618 billion, down by ₦16.838 billion (2.57%) from February. From this:
- Cost of Collection: ₦25.505 billion
- Transfers/Interventions: ₦18.363 billion
- Balance Distributed: ₦593.750 billion
- Federal Government: ₦89.063 billion
- States: ₦296.875 billion
- LG Councils: ₦207.813 billion
Gross statutory revenue rose to ₦1.718 trillion in March, up ₦65.422 billion (3.93%) from February’s ₦1.653 trillion. After deductions:
- Cost of Collection: ₦58.831 billion
- Transfers/Interventions: ₦728.817 billion
- Remaining Distributed: ₦931.325 billion
- Federal Government: ₦422.485 billion
- States: ₦214.290 billion
- LG Councils: ₦165.209 billion
- Derivation (13% to oil states): ₦129.341 billion
An additional ₦26.011 billion from EMTL was shared:
- Federal Government: ₦3.746 billion
- States: ₦12.485 billion
- LG Councils: ₦8.740 billion
- Collection Cost: ₦1.040 billion
From the ₦28.71 billion exchange difference:
- Federal Government: ₦13.40 billion
- States: ₦6.79 billion
- LG Councils: ₦5.241 billion
- Oil-Producing States: ₦3.270 billion
Manga noted that while petroleum profit tax (PPT) and companies income tax (CIT) increased, VAT, EMTL, excise duty, import duty, and CET levies declined.
Naira Exchange Rate Update
The naira appreciated slightly in the parallel market, trading at ₦1,618/$1, up from ₦1,620. However, in the official Nigerian Foreign Exchange Market (NFEM), it fell to ₦1,604/$1 from ₦1,599, marking a ₦5 drop. The gap between the official and parallel market rates narrowed to ₦14.
