Nigeria’s top earners from the 13% oil derivation fund in 2025 were all oil & gas-producing states, reinforcing the continued dominance of crude production in shaping sub-national revenues.
The ranking is based on FAAC net derivation data comparing 2025 receipts with 2024 figures across beneficiary states.
In 2025, all nine beneficiary states recorded strong year-on-year growth compared to 2024, total received by the states was N1.51 trillion, compared to N671.92 billion, reflecting higher distributable oil revenues and improved federation inflows.
This upward trend highlights how fluctuations in crude earnings directly reshape state-level fiscal strength.
The 13% derivation fund is reserved strictly for oil-producing states as compensation for resource extraction and environmental impact, and some oil states earn far more derivation than others despite similar geography.
Overall, the distribution pattern shows that while VAT and statutory allocations influence total FAAC inflows, derivation revenue remains the most decisive fiscal advantage for oil-producing states, in many cases forming a substantial portion of their final net receipts.
Nine states receiving 13% derivation of revenue allocation in Nigeria
Ondo earned N39.81 billion in derivation revenue in 2025, up from N18.63 billion in 2024. This marks an increase of N21.18 billion or 113.6%. This growth is linked to improved crude-related earnings, giving the state a moderate oil advantage.
- Net Statutory Allocation: N95.20bn
- Net VAT Allocation: N87.17bn
- EMTL: N4.85bn
Ondo’s figures demonstrate a mixed fiscal base where statutory allocation slightly outweighs VAT and derivation contributions. The state maintains a diversified inflow structure, reducing over-reliance on a single revenue stream.
