Delta replaces Lagos as largest FAAC recipient in Q2 2026

Nigeria’s 36 states received a combined N2.39 trillion from the Federation Account in the second quarter of 2026, representing a N259.41 billion, or 12.2%, increase from the N2.13 trillion received in the first quarter.

This is according to an analysis of Federation Account Allocation Committee (FAAC) disbursements to the 36 states between April and June 2026.

The Q2 distribution marked a significant reshuffling at the top of the state allocation table, with Delta, Rivers, Akwa Ibom and Bayelsa recording strong quarter-on-quarter increases, while Lagos dropped from first position in Q1 to third in Q2.

Delta emerged as the largest beneficiary in Q2 with N188.01 billion, up from N143.42 billion in Q1, while Rivers rose to second place with N172.03 billion from N123.96 billion.

Lagos, which received the largest allocation in Q1 at N200.21 billion, saw its allocation fall to N165.57 billion, a decline of N34.64 billion or 17.3%.

Delta replaces Lagos as largest FAAC recipient

Delta’s Q2 allocation increased by N44.59 billion, or 31.1%, from its Q1 receipt of N143.42 billion.

The state received N53.77 billion in April, N67.81 billion in May and N66.44 billion in June, taking its quarterly total to N188.01 billion.
The increase pushed Delta above Lagos for the first time in the supplied 2026 quarterly comparison.
Rivers recorded an even larger absolute increase, rising by N48.07 billion, or 38.8%, from N123.96 billion in Q1 to N172.03 billion in Q2.
Its allocation climbed from N46.64 billion in April to N55.07 billion in May and N70.32 billion in June, with the June figure representing the highest monthly allocation recorded among the states in Q2.
Akwa Ibom recorded the largest percentage increase among the major oil-producing states, with its allocation rising 46.2%, from N109.76 billion in Q1 to N160.51 billion in Q2.
Bayelsa also recorded a strong increase, with its allocation rising from N114.47 billion to N152.25 billion, representing a 33.0% increase.

Together, Delta, Rivers, Akwa Ibom and Bayelsa added about N181.19 billion to their combined allocations between Q1 and Q2.

Lagos allocation falls N34.64bn after exceptional Q1 performance

Lagos was the major outlier among the leading states.

The state received N200.21 billion in Q1, making it the largest FAAC recipient during the quarter. Its Q2 allocation, however, fell to N165.57 billion.
The N34.64 billion decline represents a 17.3% quarter-on-quarter reduction.
The sharp movement is particularly important because Lagos’ Q1 allocation was unusually high and was driven overwhelmingly by VAT.
The state received approximately N193.50 billion from VAT in Q1, including N101.34 billion in February alone. It also received EMTL, ecology funds and the February non-oil revenue augmentation.

By comparison, Lagos’ Q2 net VAT allocation was N150.56 billion, meaning its VAT receipts alone fell by approximately N42.94 billion, or 22.2%, from the Q1 figure supplied.

This decline helps explain why Lagos moved from first place in Q1 to third place in Q2 despite remaining the country’s largest net VAT recipient.

Akwa Ibom records biggest increase among top five

Akwa Ibom’s allocation rose from N109.76 billion in Q1 to N160.51 billion in Q2, an increase of N50.75 billion.

That was the largest percentage increase among the five largest Q2 beneficiaries, at 46.2%.
The state received N44.84 billion in April, N53.58 billion in May and N62.09 billion in June.
Bayelsa followed a similar pattern, rising from N114.47 billion to N152.25 billion, while Delta and Rivers also recorded substantial increases.

The movement means four of the five largest Q2 recipients were oil-producing states, with Lagos the only non-oil-producing state in the group.

VAT continues to reshape the distribution

The quarter-on-quarter movement also shows the growing importance of VAT in determining individual state receipts.

Lagos remained the dominant VAT recipient in Q2, receiving N150.56 billion, followed by Rivers with N75.81 billion and Oyo with N44.29 billion.
Kano received N34.17 billion, while Delta received N29.61 billion.
The Q2 VAT distribution therefore differs significantly from the broader FAAC ranking.

For example, Delta ranked first in total FAAC receipts but fifth in net VAT, while Lagos ranked third in total FAAC but first in VAT.

Oyo also illustrates the difference. It received N70.12 billion in total FAAC in Q2, placing seventh, but its N44.29 billion VAT receipt ranked third among the states.

Oyo and Kano record modest increases

Kano remained the largest northern recipient in Q2, receiving N77.53 billion, compared with N75.03 billion in Q1.

The increase was relatively modest at N2.50 billion, or 3.3%.
Oyo’s allocation rose from N68.98 billion to N70.12 billion, an increase of just 1.7%.
Both states therefore recorded much smaller quarter-on-quarter increases than the leading oil-producing states.

Kano’s Q2 net VAT allocation stood at N34.17 billion, while Oyo recorded N44.29 billion.

Ekiti records sharpest Q2 rebound

Ekiti recorded the largest percentage increase between the two quarters.

Its allocation jumped from just N17.12 billion in Q1 to N39.24 billion in Q2, an increase of N22.12 billion, or 129.2%.
The sharp increase follows an unusually weak Q1 performance, when Ekiti recorded negative statutory allocations of N16.19 billion in January and N1.68 billion in February, according to the supplied Q1 data.
The Q2 allocation therefore represents a substantial recovery from the deductions and adjustments that depressed the state’s Q1 receipts.

However, even after the rebound, Ekiti remained the second-lowest recipient in Q2, ahead of only Cross River.

Other states record broadly higher allocations

Most states recorded increases between Q1 and Q2.

Imo rose from N50.31 billion to N57.38 billion, an increase of 14.1%, while Taraba rose 13.1% and Kaduna increased 12.0%.
Ogun recorded an 18.1% increase, moving from N36.13 billion to N42.67 billion.
Abia rose 11.2%, Ondo increased 11.3%, while Ebonyi and Borno recorded increases of 9.5% and 9.3% respectively.

At the lower end of the growth table, Jigawa increased only marginally from N55.75 billion to N55.86 billion, while Enugu rose from N45.67 billion to N45.86 billion.

Adamawa increased by just 1.0%, while Edo and Oyo both recorded increases of about 1.7%.

Only Lagos recorded a decline

Based on the supplied Q1 and Q2 figures, Lagos was the only state to record a quarter-on-quarter decline in total FAAC receipts.

Its N34.64 billion reduction more than offset the smaller increases recorded by some states, but strong growth among the major oil-producing states pushed the national state allocation higher.
The shift is particularly striking because Lagos had dominated the Q1 distribution.
In Q1, the top five states — Lagos, Delta, Rivers, Bayelsa and Akwa Ibom — received a combined N691.82 billion, representing about 32.4% of all state allocations.
In Q2, the same five states received N838.37 billion, lifting their combined share to about 35.0%.

This means that while total allocations increased, a larger proportion of the money was concentrated among the five biggest recipients in Q2.

What the Q1-Q2 comparison means

The Q2 data points to a significant change in the composition of state FAAC receipts.

The N259.41 billion increase in total allocations was driven primarily by stronger receipts among oil-producing states, particularly Delta, Rivers, Akwa Ibom and Bayelsa.
At the same time, Lagos’ decline demonstrates how much quarterly state allocations can fluctuate when VAT and other revenue components change sharply.
The comparison also highlights the difference between federal revenue dependence and economic activity. Oil-producing states continued to dominate total FAAC receipts because of their statutory and derivation-related revenues, while Lagos, Oyo and Kano maintained strong positions in VAT because of their large commercial and consumption bases.

The Q2 figures also need to be read against the N200 billion April augmentation from non-oil revenue, which provided an additional boost to state receipts during the first month of the quarter.