Nigeria’s Federation Account Allocation Committee (FAAC) noted a continued fall in revenue allocations for March 2025, reporting a total of ₦1.578 trillion distributed to federal, state, and local governments.
This marks three consecutive month-on-month declines in disbursements, which raises concerns about the extent of fiscal pressures combined with rising inflation and public spending demands.
March 2025 Allocations Overview
The aggregate amount of total distributable revenue included:
Statutory revenue: 931.325 billion
Value Added Tax (VAT): 593.750 billion
Electronic Money Transfer Levy (EMTL): 24.971 billion
Exchange difference revenue: 28.711 billion
By Government Tier Distribution
Federal Government: 528.696 billion
State Governments: 530.448 billion
Local Government Councils: 387.002 billion
Oil Producing States (13% derivation): 132.611 billion
Head of Government Revenue Collection
Statutory Revenue (₦931.325bn):
Federal: ₦422.485bn | State: ₦214.290bn | Local: ₦165.209bn | Derivation: ₦129.341bn
VAT: (₦593.750bn):
Federal: ₦89.063bn | States: ₦296.875bn | Local: ₦207.813bn
EMTL: (₦24.971bn):
Federal: ₦3.746bn | States: ₦12.485bn | Local: ₦8.740bn
577bn)
March gross revenue was recorded at ₦2.411 trillion, while collection costs of ₦85.376 billion are deducted along with transfers, refunds, and interventions that total ₦747.180 billion. As noted in the report, VAT collections also dropped to ₦637.618 billion from ₦654.456 billion as gross statutory revenue increased from ₦1.653 trillion (February) to ₦1.718 trillion.
The sustained reduction in allocations risks straining the financial stability of state and local governments, particularly as inflationary pressures and public service obligations escalate. FAAC emphasized the need for proactive fiscal strategies to mitigate these challenges.
ALSO READ TOP STORIES FROM VERILY NEWS
