N81bn spent on revenue collection in March –FAAC

From Adanna Nnamani, Abuja

The cost of revenue collection rose to N81.084 billion in March 2026, representing a 4.89 per cent increase compared to the N77.302 billion recorded in February, data from the Federation Account Allocation Committee (FAAC) has shown.

The March figure was disclosed in a communiqué issued after FAAC’s April meeting in Abuja, where a total of N2.036 trillion was shared among the three tiers of government.

A comparative analysis indicates that while the cost of collection increased in absolute terms, its ratio to gross revenue remained relatively stable. In February, the N77.302 billion cost represented about 3.47 per cent of the N2.230 trillion gross revenue. In March, the N81.084 billion accounted for approximately 3.43 per cent of the N2.364 trillion gross revenue, reflecting a slight decline of 0.04 percentage points, or about 1.15 per cent improvement in efficiency.

Overall revenue performance improved in March, with total distributable revenue rising from N1.894 trillion in February to N2.036 trillion, marking a 7.50 per cent increase.

Gross revenue also increased from N2.230 trillion in February to N2.364 trillion in March, representing a 6.01 per cent rise.

Statutory revenue recorded significant growth, rising from N1.561 trillion in February to N1.699 trillion in March, an increase of 8.83 per cent. However, Value Added Tax (VAT) collections dipped slightly by 0.60 per cent, declining from N668.450 billion in February to N664.425 billion in March.

Allocations to the three tiers of government reflected the improved revenue inflow. The Federal Government’s share increased from N675.088 billion in February to N789.159 billion in March, representing a sharp 16.90 per cent rise.

State governments received N657.596 billion in March, up from N651.525 billion in February, indicating a modest 0.93 per cent increase, while allocations to local government councils rose from N456.467 billion to N468.826 billion, a 2.71 per cent increase.

Derivation revenue for oil-producing states also grew from N110.949 billion in February to N120.759 billion in March, representing an 8.84 per cent increase.

The figures suggest that although more funds were spent on revenue collection in March, the stronger growth in gross and statutory revenues helped improve overall efficiency, as the cost burden relative to total earnings slightly declined.