March FAAC Allocation Jumps By N138bn To N2.04tn Amid Oil Price Surge

| NRS, Customs Take N81.084bn

The federal government, states and local government areas of Nigeria received N2.036 trillion  as revenue for March 2026 from the Federation Account Allocation Committee (FAAC).

This represents an increase of N138 billion from the N1.898 trillion shared in February.

This was revealed in a statement by Bawa Mokwa, director of press and public relations at the Office of the Accountant General of the Federation, on Wednesday in Abuja,

Approved at FAAC’s April 2026 meeting in Abuja, the breakdown includes N1.320 trillion from statutory revenue, N515.391 billion from Value Added Tax (VAT), and N200 billion in augmentation, a communiqué from the Office of the Accountant General of the Federation indicated.

Gross revenue reached N2.364 trillion in March, after deducting N81.084 billion for collection costs and N246.872 billion for transfers, refunds, and savings.

Statutory revenue climbed to N1.699 trillion, up N137.914 billion from February’s N1.561 trillion.

Value Added Tax (VAT), however, dipped slightly to N664.425 billion from N668.450 billion.

The Nigeria Revenue Service (NRS) and the Nigeria Customs Service (NCS) jointly retained N81.084 billion as cost of collection for March 2026,

The communiqué showed that total gross revenue available in March 2026 stood at N2.364 trillion.

From this amount, N81.084 billion was deducted as cost of collection, while N246.872 billion was allocated for transfers, refunds and savings.

Under the current framework, the NRS retains four per cent of non-oil taxes, while the NCS retains seven per cent of customs levies and duties, reflecting their roles as the primary revenue collection agencies on behalf of the government.

In addition, the Nigerian Upstream Petroleum Regulatory Commission continues to retain four per cent of royalties, signature bonuses and other oil and gas revenues.

A breakdown of revenue performance showed that gross statutory revenue rose to N1.699 trillion in March 2026, representing an increase of N137.914 billion compared to the N1.561 trillion recorded in February 2026.

However, VAT collections recorded a marginal decline, with gross VAT revenue for March standing at N664.425 billion, which was N4.025 billion lower than the N668.450 billion generated in the preceding month.

From the N2.036 trillion distributable pool, the federal government received N789.159 billion, while state governments got N657.596 billion.

Local government areas received N468.826 billion. Additionally, the sum of N120.759 billion, representing 13 per cent derivation revenue, was shared among oil-producing states.

Further analysis showed that from the N1.320 trillion statutory revenue, the federal government received N632.260 billion, states got N320.691 billion, and local governments received N247.239 billion. The derivation component of N120.759 billion was also drawn from this segment.

From the N515.391 billion VAT revenue, the federal government received N51.539 billion, states received N283.465 billion, while local government councils got N180.387 billion.

The N200 billion augmentation was shared, with the federal government receiving N105.360 billion, states N53.440 billion, and local governments N41.200 billion.

The communiqué also highlighted shifts in revenue sources during the month under review, noting significant increases in Companies Income Tax (CIT), Capital Gains Tax (CGT), Stamp Duties (SDT), and Excise Duty.

On the downside, collections from Petroleum Profit Tax (PPT), Hydrocarbon Tax (HT), oil and gas royalties, import duty, and Common External Tariff (CET) declined considerably, while VAT revenue also recorded a slight decrease.

FAAC, which meets monthly, is responsible for the distribution of federally collected revenue to the three tiers of government in line with existing allocation frameworks.