Nigeria’s 36 states shared N3.61 trillion in net FAAC allocations in the first half of 2025, Nairametrics analysis shows.
The figure represents states’ direct inflows after statutory deductions, excluding allocations to local governments and other statutory transfers.
The data shows a familiar pattern, oil-producing states dominated disbursements, while large, populous states like Lagos, Kano, and Oyo sustained strong inflows through demographic-driven formulas.
Delta, Rivers, and Lagos collectively accounted for over 22% of total net allocations, underscoring the fiscal weight of oil production and urban consumption hubs.
Meanwhile, Kano, Oyo, Anambra, and Katsina ranked among the top non-oil recipients.
Lagos, Rivers, and Kano led VAT inflows, while Delta and Akwa Ibom gained significant boosts from exchange gains and EMTL, further consolidating their net positions.
Below are the states with the highest FAAC net allocation.
Top Recipients of FAAC Net Allocations
Lagos remains the top non-oil state and does not benefit from oil derivation, with the highest monthly allocation of N45.15bn in February. Its receipts are driven by population size and federal allocation metrics. Combined with its industry-leading IGR base, Lagos is the most financially resilient state in Nigeria, able to balance both federal and internal revenues. Other allocation details:
- Gross total: N37.05bn
- Exchange gain: N6.53bn
- EMTL: N12.73bn
- VAT: N274.85bn (highest nationwide)
- VAT deduction: N47.03bn (only Lagos state had VAT deduction)
