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
Delta remained the largest beneficiary of derivation revenue, receiving N458.65 billion in 2025, compared to N216.71 billion in 2024. This marks an increase of N241.94 billion or 111.6%. This increase is driven significantly by its massive crude oil output and sustained derivation inflows.
- Net Statutory Allocation: N504.37bn
- Net VAT Allocation: N101.42bn
- EMTL: N5.72bn
Delta’s numbers reflect the advantage of being Nigeria’s leading oil-producing powerhouse. The state consistently commands the largest derivation share nationwide, reinforcing its dominant fiscal position among all states.
More insight
Looking beyond absolute figures, derivation revenue as a share of each state’s Total Net FAAC Amount reveals how dependent these states are on oil inflows and how diversified their fiscal structures are when VAT, and EMTL are considered.
- Delta State stands out as the most oil-dependent, with 70.60% of its total net amount coming from derivation revenue. Despite also posting a modest VAT contribution (15.61%), its fiscal strength is still overwhelmingly tied to crude production, while EMTL contributes less than 1%.
- Bayelsa State follows closely with 65.65% of its total net allocation driven by derivation. VAT contributes only 18.03%, and EMTL remains marginal at 0.78%, reinforcing Bayelsa’s heavy structural reliance on oil earnings.
- Akwa Ibom State records 61.48% derivation dependence, confirming oil as its primary fiscal backbone. However, VAT inflow (19.39%) show a slightly broader revenue mix compared to Bayelsa, even though EMTL remains minimal at 1.00%.
- Rivers State presents a more balanced structure relative to its oil-producing peers, with 51.26% of its total net amount tied to derivation. What distinguishes Rivers is its significantly higher VAT share (39.37%), indicating stronger commercial and industrial activity, while EMTL contributes 1.20%.
Edo, Ondo, Imo, Abia, and Anambra all display low-to-moderate oil dependence (10%–23% derivation share) and are largely sustained by VAT, which contributes roughly 44%–47% of total net revenue, while EMTL remains small at about 2%–3%, highlighting fiscally diversified, consumption-driven revenue structures rather than oil-led finances.
