FAAC allocated N1.68 trillion to the three tiers of government in February 2025, marking a notable drop compared to January.
Revenue Decline and Causes
The total distributed amount was N1.68 trillion, down from the previous month due to a significant decline in VAT revenue by N117.43 billion. This decrease is attributed to reduced consumer spending and economic challenges.
Allocation Details
The federal government received N569.656 billion, state governments were assigned N562.195 billion, and local councils got N410.559 billion. An additional N136.042 billion was distributed as 13 per cent derivation revenue to the mineral-producing states.
Economic Implications
The drop in tax collections raises concerns over economic performance, linked to decreased consumer activity and lower industry profitability. This may pose budget constraints for governments at different levels.
In the current economic landscape, authorities are pushed to seek new measures to stabilize revenues and enhance financial resilience.
