Nigeria’s 36 states collectively received ₦4.43 trillion from the Federation Account Allocation Committee (FAAC) between January and July 2025, according to data released by the National Bureau of Statistics (NBS) and FAAC reports. The disbursements reflect ongoing fiscal transfers from federally collected revenues, including oil proceeds, value-added tax (VAT), and statutory allocations.
Analysis of the figures shows that oil-producing states accounted for about 35 percent of the total funds shared, underscoring their continued advantage from derivation revenue and statutory allocations tied to crude oil production.
Delta State emerged as the highest recipient within the seven-month period, receiving a total of ₦361.23 billion, followed by Rivers State with ₦301.18 billion, Lagos State with ₦279.03 billion, Akwa Ibom with ₦278.11 billion, and Bayelsa with ₦274.81 billion. Collectively, these five states alone accounted for nearly 35 percent of the total FAAC disbursement to all states within the period under review.
At the lower end of the distribution were Ekiti State, which received ₦70.83 billion, and Ogun State, with ₦67.20 billion, reflecting lower fiscal allocations due to limited oil production and smaller revenue derivation bases.
Economic analysts note that the widening gap between high-revenue and low-revenue states highlights Nigeria’s continued dependence on oil income and the structural imbalance in its revenue-sharing formula. States with little or no natural resource endowment remain heavily reliant on monthly FAAC allocations to fund recurrent expenditure and capital projects.
The report comes amid renewed calls for fiscal federalism and revenue diversification, as several state governments struggle to meet salary obligations and execute infrastructure programs. Experts have urged subnational governments to strengthen internal revenue generation, reduce waste, and invest in productive sectors to lessen dependence on federal allocations.
The FAAC allocations are distributed monthly among the federal, state, and local governments, with derivation, VAT, and statutory revenue forming the major components. Despite oil price fluctuations and production challenges, oil-producing states continue to benefit significantly from the 13 percent derivation principle, which allocates a portion of oil revenue directly to producing regions.
