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
Rivers recorded one of the largest increases among oil-producing states, rising from N39.08 billion in June 2025 to N41.65 billion in July 2025, a 6.56% increase (N2.56 billion).
- Gross total: N46.79bn
- Exchange gain: N681.77m
- EMTL: N581.92m
- VAT: N16.58bn
The state remains a key oil and gas hub in the Niger Delta, with derivation and crude royalties forming the bulk of its allocation. However, ongoing production constraints in some fields have kept overall growth moderate.
