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.

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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 

Ondo State – N88.11bn (2.44% of total)

Ondo completed the top 10 with N88.11 billion, peaking at N15.47bn in May. As a minor oil producer, Ondo benefits from both derivation and statutory allocations, though its inflows are modest compared to larger Niger Delta states. Other allocation details:

  • Gross total: N42.71bn
  • Exchange gain: N7.13bn
  • EMTL: N2.12bn
  • VAT: N42.50bn

Katsina State – N88.14bn (2.44% of total)

Katsina followed closely with N88.14 billion and a peak of N15.93bn in February. Like Kano, its receipts are primarily population-driven. Despite significant inflows, Katsina remains heavily dependent on FAAC, with limited internally generated revenue. Other allocation details:

  • Gross total: N33.99bn
  • Exchange gain: N5.99bn
  • EMTL: N2.49bn
  • VAT: N52.64bn

Anambra State – N89.83bn (2.49% of total)

Anambra received N89.83 billion with its highest inflow of N15.98bn in February. The state’s ranking reflects both population size and commercial activity. While allocations are modest compared to oil states, Anambra remains one of the top-performing non-oil subnationals. Other allocation details:

  • Gross total: N36.68bn
  • Exchange gain: N6.43bn
  • EMTL: N2.58bn
  • VAT: N46.06bn

Oyo State – N95.28bn (2.64% of total)

Oyo secured N95.28bn, with its highest allocation of N18.15bn in June. Oyo’s fiscal position is strengthened by a combination of federal allocations and growing IGR, making it one of the more balanced non-oil economies. However, its allocation remains less than half of Delta’s, underlining the uneven fiscal distribution. Other allocation details:

  • Gross total: N31.02bn
  • Exchange gain: N5.47bn
  • EMTL: N2.42bn
  • VAT: N56.84bn

Kano State – N120.04bn (3.32% of total)

Kano led the non-oil northern states with N120.04 billion allocation in H1, peaking at N21.59bn in February. Its allocation is almost entirely population-driven, given its lack of oil resources. While significantly lower than oil states, Kano’s inflows underscore the importance of demographics in the FAAC formula. Other allocation details:

  • Gross total: N43.87bn
  • Exchange gain: N7.73bn
  • EMTL: N3.45bn
  • VAT: N71.76bn

Bayelsa State – N229.56bn (6.36% of total)

Bayelsa, despite its small population, ranked fifth and received N229.56 billion in H1 with a high of N41.58bn in May. Its outsized allocation relative to its size illustrates how derivation boosts fiscal inflows beyond demographic weight. Other allocation details:

  • Gross total: N170.79bn
  • Exchange gain: N23.74bn
  • EMTL: N1.65bn
  • VAT: N33.15bn

Akwa Ibom State – N230.99bn (6.40% of total)

Akwa Ibom secured the fourth-highest allocation at N230.99 billion, with a peak disbursement of N44.61bn in May. The state remains one of the largest oil producers and continues to benefit significantly from derivation inflows. Other allocation details:

  • Gross total: N164.06bn
  • Exchange gain: N24.16bn
  • EMTL: N2.15bn
  • VAT: N47.62bn

Lagos State – N236.92bn (6.56% of total)

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)

Rivers State – N264.90bn (7.34% of total)

Rivers followed closely with over N264.9 billion, peaking at N46.27bn in February. Its revenues are also oil-driven, reinforcing the dominance of derivation states in FAAC disbursements. Despite strong allocations, Rivers continues to face scrutiny over infrastructure execution and the efficiency of spending, especially given the state’s development gaps despite high revenues. Other allocation details:

  • Gross total: N160.80bn
  • Exchange gain: N22.79bn
  • EMTL: N2.78bn
  • VAT: N112.22bn

Delta State – N299.96bn (8.31% of total)

Delta received the highest allocation nationwide in H1 2025, with its peak disbursement of N58.85bn in May. The state’s heavy reliance on oil derivation explains its fiscal edge, keeping it consistently ahead of peers. With nearly N300bn in six months, Delta’s allocation represents more than the combined receipts of several smaller states. Other allocation details:

  • Gross total: N230.15bn
  • Exchange gain: N31.33bn
  • EMTL: N2.53bn
  • VAT: N49.88bn