In an exciting development for Nigeria’s fiscal landscape, the Federation Account Allocation Committee (FAAC) has announced that a staggering total of ₦1.578 trillion has been allocated for March 2025. This financial windfall will be distributed among the Federal Government, States, and Local Government Councils, marking a significant moment in the nation’s economic planning.
The FAAC disclosed these figures during its meeting in Abuja in April 2025, providing a comprehensive breakdown of the total distributable revenue. This includes ₦931.325 billion in statutory revenue, ₦593.750 billion from Value Added Tax (VAT), ₦24.971 billion from the Electronic Money Transfer Levy (EMTL), and ₦28.711 billion from Exchange Differences. This diversified income reflects the ongoing efforts to stabilize the national economy amidst fluctuating market conditions.
Altogether, the total gross revenue for March 2025 amounted to ₦2.411 trillion, although deductions for collection costs totaled ₦85.376 billion. The total deductions and transfers, including interventions and refunds, reached ₦747.180 billion—evidence of the government’s commitment to transparent financial practices.
A deeper dive into the revenue streams reveals that Nigeria’s gross statutory revenue hit ₦1.718 trillion, an increase of approximately ₦65.422 billion from the previous month. This upward trend in revenue is encouraging as it suggests a recovering economy, particularly in oil and gas sectors.
States received a significant portion of the distribution from the total revenue of ₦1.578 trillion. The Federal Government received ₦528.696 billion, while State Governments took home ₦530.448 billion. Local Government Councils were allocated ₦387.002 billion, with an additional ₦132.611 billion allocated as derivation revenue for benefiting States.
Breaking it down further, from the statutory revenue, the Federal Government obtained ₦422.485 billion, while State Governments garnered ₦214.290 billion. Local Governments were allocated ₦165.209 billion, showcasing the commitment to equitable distribution among different tiers of administration.
VAT revenues tell a slightly different story. While the total distributable VAT revenue was ₦593.750 billion—spanning across various sectors—there was a slight dip from February’s figures, highlighting the need for continued focus on revenue generation in this area.
Notably, receipts from Petroleum Profit Tax (PPT) and Companies Income Tax (CIT) have seen an encouraging uptick, signaling a beneficial shift that could bolster government revenues further. However, lower returns from Oil and Gas Royalty, VAT, and other levies highlight an area for future growth and improvement.
The FAAC’s recent allocations exemplify the ongoing efforts to enhance Nigeria’s economic framework, aiming for a balanced and sustainable future. As these funds make their way to various government levels, the hope is for strategic investments in public services, infrastructure, and community development across the nation.
For more updates and insights on Nigeria’s economic developments, stay tuned to Africazine.
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