The Federation Account Allocation Committee (FAAC) has shared N2.036 trillion as revenue for March 2026, reinforcing a historic surge in public revenue distribution under President Bola Ahmed Tinubu.
The latest disbursement, announced after the April FAAC meeting in Abuja, brings into sharper focus the scale of fiscal flows since the current administration assumed office in May 2023 – an era now defined by record-breaking allocations in Naira terms.
The N2.036 trillion distributable revenue in March comprised:
• N1.320 trillion in statutory revenue
• N515.391 billion from VAT
• N200 billion in augmentation
From the total:
• Federal Government: N789.159 billion
• State Governments: N657.596 billion
• Local Governments: N468.826 billion
• Derivation (oil-producing states): N120.759 billion
Gross revenue stood at N2.364 trillion, with deductions for collection (N81.084 billion) and transfers, refunds, and savings (N246.872 billion).
While statutory revenue increased significantly month-on-month, VAT declined slightly, and oil-related revenues – including Petroleum Profit Tax and royalties – continued to show volatility. In contrast, non-oil taxes such as Companies Income Tax and excise duties recorded strong gains.
The Bigger Story: Trillions Shared in Less Than Three Years
Beyond the March figures lies a much larger fiscal story.
Data from government and industry reports show that FAAC allocations have risen sharply since mid-2023:
• Government shared about N10.9 trillion in 2023
• Disbursements surged to a record N15.26 trillion in 2024
• In just the first 11 months of 2025, N33.27 trillion had already been shared
Quarterly and monthly data reinforce the trend. For instance, N4.95 trillion was distributed in Q1 2025 alone , while a single quarter (Q3 2025) saw allocations hit N6 trillion .
Taken together, conservative estimates suggest that well over N30 trillion – and likely far more – has been distributed since Tinubu took office, marking one of the most expansive revenue-sharing periods in Nigeria’s history.
From Sub-N1trn to N2trn+: A Structural Shift
The contrast with the pre-2023 period is obvious.
When the administration came in, FAAC monthly distributions hovered below N1 trillion – May 2023, for example, saw N786 billion shared . By 2025–2026, monthly allocations have consistently crossed N1.5 trillion, with several months exceeding N2 trillion.
This elevated expansion has been driven by:
• Fuel subsidy removal
• Exchange rate unification
• Higher naira-denominated oil revenues
• Growth in non-oil tax collections
These reforms have significantly increased the pool of distributable revenue, even if much of the growth is partly inflation-driven.
The surge has translated into higher inflows for all tiers of government, particularly states and local governments.
In 2024 alone, states received about N5.38 trillion from FAAC , with oil-producing states and major commercial hubs like Lagos, Rivers, and Delta consistently ranking among top beneficiaries.
State allocations have risen sharply, with some recording increases of over 50 percent compared to previous years, reflecting both higher revenues and structural changes in the allocation formula.
More Money, Same Questions
Despite the unprecedented inflows, the impact on citizens remains contested.
Economists point to:
• Persistent inflation
• Rising cost of living
• Weak service delivery in many states
This has elicited debate: whether Nigeria’s fiscal challenge is still about revenue—or increasingly about efficiency and accountability.
The Tinubu administration’s tenure is fast becoming synonymous with record FAAC distributions. Yet, as allocations continue to climb, the central question is shifting.
It is no longer just how much is being shared, but how well those trillions are being spent.
