THE Federation Account Allocation Committee’s (FAAC) allocation to the tiers of government fell to N1.578 trillion in March 2025.

The committee said in a statement on Tuesday, April 15, by the Director of Press and Public Relations at the Office of the Accountant General of the Federation, Bawa Mokwa.

It attributed the continuous decline to reductions in oil and gas royalty, Value-Added Tax (VAT), electronic money transfer levy (EMTL), excise duty, import duty, and common external tariff (CET) levies.

The ICIR reports that the continuous drop in the monthly allocation to the federal, state, and local governments raises a growing concern about fiscal sustainability, especially for state and local governments that rely heavily on FAAC monthly disbursements for salaries and capital expenditure.

The drop could also worsen Nigeria’s budget crisis as the government plans a budget reset with dwindling oil revenue resources, which has seen oil prices drop below $75/barrels per day, which is the official benchmark for the 2025 federal budget.

In January, the FAAC allocation, which stood at N1.703 trillion, fell to N1.678 trillion in February and now to N1.578 trillion in March.

“A total sum of N1.578 trillion, being March 2025 Federation Account Revenue, has been shared with the Federal Government, States, and the Local Government Councils.

“The revenue was shared at the April 2025 Federation Account Allocation Committee (FAAC) meeting held in Abuja,”  the committee said.

A breakdown of the distributable revenue

According to the statement, the amount of money shared among the tiers of government comprised statutory revenue, VAT, EMTL, and exchange difference earnings.

It revealed that out of the N1.578 trillion shared, the federal government received N528.696 billion, state governments received N530.448 billion, and local government councils received N387.002 billion.

It added that N132.611 billion was allocated to oil-producing states as 13 per cent derivation revenue.

The committee stated further that the statutory revenue formed the largest share at N931.325 billion, from which the federal government received N422.485 billion, the states N214.290 billion, and local councils N165.209 billion.

It said that from the VAT revenue of N593.750 billion, the federal government received N89.063 billion, the states N296.875 billion, and the local councils N207.813 billion.

The federal government also received N3.746 billion from the N24.971 billion EMTL, while states and local governments received N12.485 billion and N8.740 billion, respectively.

From the N28.711 billion exchange difference revenue, the federal government received N13.402 billion, the states N6.798 billion, and the local councils N5.241 billion.

Also, an additional N3.270 billion was disbursed as derivation revenue from this category.

A total gross revenue of N2.411 trillion was available in March 2025, from which N85.376 billion was deducted as the cost of collection and N747.180 billion for statutory transfers, refunds, and interventions.

All of these left the amount shared at N1.578 trillion, the lowest since the start of the year.