FG, states, LGAs to get less as FAAC allocation declines again to N1.57 trillion

• The FAAC has disclosed that revenues have declined again in March 2025, the third time this year
• This means that the federal government, states, and local governments get even less allocation this month
• The decline is despite increases seen in company income tax, petroleum taxes, and several others

Legit.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience in business reporting across digital and mainstream media.

The federal government, 36 state governments, and 774 local governments have experienced a revenue decline this month, as federal allocations have decreased for the third consecutive month.

The Federation Account Allocation Committee reported a revenue of N1.703 trillion for January 2025, which decreased to N1.678 trillion the following month.

March, being the third month of the year, has seen the revenue decline even further to N1.578 trillion.

The Press statement issued by Director of Press and Public Relations, Office of the Accountant General of the Federation, Bawa Mokwa, on Tuesday disclosed this information after the April FAAC meeting.

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Breakdown of March 2025 revenues

The statement mentioned a gross revenue of N2.411 trillion, but prior deductions included N85.376 billion for collection costs and N747.180 billion for transfers, refunds, and other interventions.

The breakdown of the revenue shows that;

• Statutory revenue made up N931.325 billion
• Value Added Tax accounted for N593.75 billion
• The Electronic Money Transfer levy was N24.971 billion
• Exchange difference revenue was N28.711 billion

Overall, statutory revenue increased from N1.653 trillion the previous month to N1.718 trillion in March, while VAT reduced N654.456 billion to N637.618 billion, along with EMTL, Excise duties, import duties, and oil and gas royalties.

The statement indicated that the funds were distributed during the April FAAC meeting held in Abuja on Tuesday, as reported by The PUNCH.

How much FG, states, and local governments received

The statement also gave a breakdown of how the money was shared.

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• The Federal government received N528.696 billion.
• The state governments received a combined N530.448 billion.
• The local government councils received N387.002 billion.
• The oil-producing states received N132.611 billion as 13% derivation revenue.

The N931 billion statutory revenue was shared three ways, with the federal government receiving N422.485 billion, state governments receiving N214.290 billion, and the local government receiving N165.209 billion. Oil-producing states got an additional N129.341 billion as derivation.

The Electronic Money Transfer Levy was also shared three ways – N3.746 billion to federal government, N12.485 billion and N8.740 billion to the states and local governments councils.

The Value Added Tax revenue was shared similarly - N89.063 billion, N296.875 billion, and N207.813 billion to the federal, states, and local governments, respectively.

The Exchange difference was also split into N13.402 billion, N6.798 billion and N5.241billion, to the federal, states and local governments respectively. Oil-producing states got an additional N3.270 billion as derivation.

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Local governments to receive direct allocations from FG

In related news, Legit.ng has reported that the local government councils now get direct FAAC allocation from the federal government in furtherance of the Supreme Court judgement on local government autonomy.

This started with the January FAAC allocations, as the presidency noted that it had put in place the necessary mechanisms.

The Supreme Court ruled in July 2024 that the states did not have the constitutional right to control the funds of the local government.

Source: Legit.ng