Nigeria’s top recipients of Federation Account Allocation Committee (FAAC) disbursements in 2025 were again dominated by oil-producing states and major commercial hubs, with Lagos, Delta, and Rivers leading by total gross receipts.
The figures are based on FAAC data reviewed across all 36 states, covering statutory allocations, derivation revenue, VAT, and other federally shared inflows during the year, regardless of the underlying transaction period.
Overall, the distribution pattern highlights the continued importance of oil revenue, while also underscoring the growing influence of consumption, digital transactions, and population-driven statutory formulas on state finances.
What the data is saying
FAAC allocations in 2025 were driven by a combination of five revenue components that together determined each state’s total gross and net receipts.
These components shaped why oil-producing states and large commercial centers consistently ranked at the top of the distribution table.
- Allocations were made up of 13% derivation revenue (net), gross and net statutory allocation, Electronic Money Transfer Levy (EMTL), and net VAT allocation.
- States with crude oil production benefited disproportionately from derivation revenue, while highly urbanized states attracted stronger VAT and EMTL inflows.
- When combined, these revenue streams defined each state’s total gross amount and final net amount after deductions.
As a result, the Top 10 states accounted for a significant share of FAAC inflows in 2025, reinforcing long-standing fiscal disparities among states.
Top 10 States with the Highest FAAC Net Allocation in 2025
A closer look at the Top 10 states by Total Net FAAC allocation shows clear patterns shaped by oil production, population size, geography, and federal revenue-sharing formulas.
Borno’s FAAC inflow stood at N198.75 billion in 2025, rising from N127.75 billion in 2024, an increase of N71 billion or 55.58%.
- Net Statutory Allocation: N89.11bn
- Net VAT Allocation: N92.18bn
- EMTL: N5.02bn
The increase in the FAAC inflow is largely driven by stronger net statutory inflows, significantly higher VAT allocations reflecting nationwide consumption growth, and a modest improvement in EMTL receipts.
