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
Bayelsa earned N320.45 billion in derivation revenue in 2025, up from N129.73 billion in 2024. This marks an increase of N190.72 billion or 147.0%. This increase is driven overwhelmingly by oil production, making derivation the backbone of its finances.
- Net Statutory Allocation: N367.14bn
- Net VAT Allocation: N87.98bn
- EMTL: N3.82bn
Bayelsa’s numbers highlight one of the highest oil dependencies relative to population size. The state’s fiscal strength is closely tied to crude output, with VAT contributing a comparatively smaller share.
