Nigeria’s Federation Account Allocation Committee (FAAC) disbursed a total net allocation of N703.26 billion to states in January 2026, reflecting a 7.18% increase in revenue distribution from that of December 2025.
The total gross distributable revenue from December 2025 available for disbursement in January 2026 stood at N2.59 trillion, with N546.14 billion allocated to the Federal Government and N511.17 billion to the Local Government Councils (LGCs), making states the largest recipient among the three levels of government.
This is according to the recent data on FAAC released by the Office of the Accountant-General of the Federation, reported by the National Bureau of Statistics for the period under review.
The latest allocation highlights sustained growth driven by improved statutory revenues, VAT inflows, and electronic transaction levies, with a significant concentration among the top-performing states.
Deduction from gross statutory allocation includes external debt servicing, contractual obligations, and other deductions, while net allocations are augmented by Electronic Money Transfer Levy (EMTL), net share of ecology, and net VAT, and some oil-producing states have 13% derivation revenue.
The data also shows that allocations rose by 32.06% year-on-year from N532.34 billion recorded in January 2025 and increased by 7.18% month-on-month from N656.12 billion in December 2025, signaling continued fiscal momentum.
What the data is saying
The data reflects a strong expansion in revenue distribution to states, highlighting a concentration pattern
- Net allocations rose by 32.06% year-on-year from N532.34 billion recorded in January 2025.
- The net allocations also increased by 7.18% month-on-month from N656.12 billion in December 2025, signaling continued fiscal momentum.
- The top 10 states account for N314.78 billion, representing 44.76% of the total net allocation for the period under review. This concentration highlights a widening fiscal gap, with a small group of states receiving nearly half of total allocations.
- Lagos State recorded the highest net allocation of N55.83 billion, accounting for 7.94% of the total net allocation.
- Jigawa state recorded the highest year-on-year percentage change of 54.43%, up from N12.68 billion in January 2025 to N19.58 billion in January 2026.
- Ekiti State recorded a negative net allocation of N6.69 billion in January 2026 due to heavy deductions from its gross statutory revenue.
The figures reflect both structural advantages for oil-producing states and rising contributions from consumption-driven economies.
Top 10 States by Net FAAC Allocation – January 2026
Lagos maintained its top position, supported by the highest VAT contribution of N50.12 billion and strong EMTL inflows of N3.31 billion, reflecting its status as Nigeria’s commercial hub.
Lagos state recorded the highest increase of 65.24% month-on-month (N22.04 billion) from N33.79 billion in December 2025. The state also grew by 43.58% from N38.88 billion in January 2025.
Other disbursements allocated to Lagos include:
- Gross Statutory Allocation – N9.08bn
- Net Statutory Allocation – N2.14bn
- EMTL – N3.31bn
- Net VAT Allocation – N50.12bn
- Total Gross Allocation – N73.65bn
Lagos continues to benefit from its position as Nigeria’s commercial hub, with strong VAT performance driven by increased consumption, digital payments, and business activities. Recent improvements in electronic transaction volumes and tax efficiency have further boosted EMTL and VAT collections.
