FAAC revenue collection cost March 2026 rose to N81.084bn, even as Nigeria recorded higher gross revenue and slight efficiency improvement
The cost of revenue collection in Nigeria rose to N81.084 billion in March 2026, according to data released by the Federation Account Allocation Committee (FAAC), even as the country recorded improved overall revenue performance for the month.
The FAAC revenue collection cost March 2026 figure represents a 4.89 per cent increase compared to N77.302 billion recorded in February, based on a communiqué issued after the committee’s April meeting in Abuja, where N2.036 trillion was shared among the three tiers of government.
Despite the rise in nominal costs, analysis of the figures shows a marginal improvement in efficiency.
The cost of collection as a share of gross revenue declined slightly from 3.47 per cent in February to 3.43 per cent in March.
This reflects a small but notable improvement in cost efficiency, even as more funds were expended on revenue collection during the period.
Overall revenue performance strengthened in March, with total distributable revenue increasing from N1.894 trillion in February to N2.036 trillion, representing a 7.50 per cent rise.
Gross revenue also climbed from N2.230 trillion to N2.364 trillion, indicating a 6.01 per cent increase month-on-month.
Statutory revenue recorded strong growth, rising by 8.83 per cent from N1.561 trillion in February to N1.699 trillion in March.
However, Value Added Tax (VAT) collections dipped slightly by 0.60 per cent, falling from N668.450 billion to N664.425 billion.
Allocations to the three tiers of government also reflected the improved revenue inflow.
The Federal Government received N789.159 billion in March, up from N675.088 billion in February, marking a significant 16.90 per cent increase.
State governments received N657.596 billion, while local government councils got N468.826 billion, reflecting modest increases of 0.93 per cent and 2.71 per cent respectively.
Oil-producing states also saw an uplift in derivation revenue, which rose from N110.949 billion to N120.759 billion, an increase of 8.84 per cent.
Overall, the data suggests that while revenue collection costs rose in absolute terms, stronger revenue growth helped maintain relatively stable efficiency levels across the federation account system.
