FAAC Distributes ₦1.578 Trillion to FG, States, and LGs for March 2025 as Naira Strengthens Slightly

ABUJA, Nigeria — The Federation Account Allocation Committee (FAAC) has announced the disbursement of ₦1.578 trillion among the Federal Government, 36 states, and 774 local government councils for the month of March 2025.

The allocation was disclosed in a communiqué issued by the Office of the Accountant-General of the Federation, signed by Bawa Mokwa, Director of Press and Public Relations, on Saturday. The distribution is based on revenues derived from statutory sources, Value Added Tax (VAT), Electronic Money Transfer Levy (EMTL), and exchange difference.

Revenue Breakdown: March 2025

Revenue Source	Amount (₦)
Statutory Revenue	931.325 billion
VAT Revenue	593.750 billion
Electronic Transfer Levy	26.011 billion
Exchange Difference	28.710 billion
Total Revenue	1.578 trillion

Allocation to Government Tiers

Tier of Government	Amount (₦)
Federal Government	528.69 billion
State Governments	530.44 billion
Local Government Councils	387.002 billion
Oil-Producing States (13% Derivation)	132.611 billion

Collection Costs and Interventions

₦85.37 billion: Allocated for cost of collection
₦747.18 billion: Set aside for transfers, interventions, and refunds

VAT Revenue Dips, Statutory Revenue Rises

FAAC noted that VAT revenue declined by ₦16.83 billion (2.57%), dropping from ₦654.456 billion in February to ₦637.618 billion in March. However, statutory revenue rose by ₦65.42 billion (3.93%), increasing from ₦1.653 trillion to ₦1.718 trillion.

Naira Exchange Rate Update

Parallel Market: Naira appreciated to ₦1,618/$ from ₦1,620/$ on Monday
Official Market (NFEM): Naira depreciated to ₦1,604/$ from ₦1,599/$

The exchange rate gap between the official and parallel markets narrowed to ₦14, compared to ₦21 earlier in the week, reflecting increased market stability.

Additional Insights

Electronic Money Transfer Levy (EMTL) of ₦26.01 billion was distributed as follows:
- FG: ₦3.75 billion
- States: ₦12.48 billion
- LGs: ₦8.74 billion
- Collection cost: ₦1.04 billion
Exchange Difference Allocation:
- FG: ₦13.40 billion
- States: ₦6.79 billion
- LGs: ₦5.24 billion
- Oil-Producing States: ₦3.27 billion
Revenue Growth Drivers:
- Petroleum Profit Tax (PPT) and Companies Income Tax (CIT) recorded significant increases
- Declines were seen in: Oil and gas royalty, VAT, EMTL, excise duty, import duty, and CET levies

Conclusion

The March 2025 revenue disbursement reflects a steady inflow of statutory revenues and modest foreign exchange support despite declines in VAT and other levies. As the naira continues to show mixed signals across markets, the focus remains on sustaining fiscal stability, strengthening non-oil revenue sources, and narrowing the forex gap.

Stakeholders, especially subnational governments, are expected to leverage their allocations to bolster infrastructure, pay workers’ salaries, and fund critical social projects across the country.