The Federation Account Allocation Committee (FAAC) continues to play a pivotal role in Nigeria’s fiscal framework, disbursing monthly revenue from oil and non-oil sources to states and local governments.
These allocations remain vital for funding public salaries, infrastructure projects, and social services at the subnational level.
According to FAAC data for July 2025, total allocations to the 36 states rose to N704.01 billion, up from N648.78 billion in June 2025. This represents an increase of about N55.22 billion or 8.51% year-on-year, signaling a modest rebound in federally distributable revenues.
The surge reflects improved exchange rate adjustments and a higher revenue take from VAT and import duties. Still, the top recipients remain in a group of states—those with strong oil production bases or significant economic weight.
10 States that received the highest allocations in July 2025
Delta maintained its position as Nigeria’s highest FAAC earner, receiving N50.70 billion in July 2025, up from N49.66 billion in June 2025. This marks an increase of N1.04 billion or 2.09%.
- Gross total: N53.33bn
- Exchange gain: N1.08bn
- EMTL: N524.45m
- VAT: N8.75bn
As one of the largest oil-producing states, Delta’s inflows are driven by the 13% derivation fund alongside its statutory and VAT shares. High crude oil prices and stable production have helped the state sustain its top ranking for several months.
What you should know
- The top 10 states collectively received N315.13 billion in July 2025—representing over 44% of the N704.01 billion distributed among all 36 states.
- The data highlights Nigeria’s structural fiscal imbalance, where a handful of oil-rich and economically advanced states dominate the revenue pool. While the month-on-month increase in allocations is encouraging, it also highlights the continued dependence of most states on federal transfers for survival.
- Oil-producing states such as Delta, Rivers, Bayelsa, and Akwa Ibom remain at the top, while non-oil states like Lagos, Kano, and Oyo are gradually improving due to stronger VAT performance and internal revenue efforts.
- As Nigeria advances its economic reforms and subsidy restructuring, these monthly allocations will continue to serve as a vital gauge of state-level fiscal health and spending capacity.
