Nigeria’s state governments experienced divergent revenue outcomes from the 2025 Federation Account Allocation Committee (FAAC) disbursements, with certain states once again capturing significantly larger shares of federally pooled funds. The FAAC allocations — which encompass statutory sharing, value-added tax (VAT), electronic money transfer levies (EMTL), and oil derivation proceeds — revealed a continued dominance by major oil producers and populous economic centres.
Compiled from comprehensive federal data covering all 36 states, the annual FAAC figures highlight how the revenue-sharing formula favours states with robust crude oil contributions, high consumer activity, and larger populations. These dynamics shaped allocations throughout the year, driving fiscal imbalances that reflect longstanding structural trends in Nigeria’s subnational financing.
Revenue Components Driving Allocations
State FAAC receipts for 2025 comprised multiple revenue sources that together establish total net allocation figures:
- Net Statutory Allocations: Standard shares of federally collected revenue distributed to states.
- 13% Derivation Revenue: Oil-linked revenues specially earmarked for producing regions.
- Net VAT Allocation: Distributed based on consumption patterns across states.
- Electronic Money Transfer Levy (EMTL): Allocations tied to digital financial activity.
The combination of these streams underpins why oil-producing states and centres of economic activity continue to dominate the FAAC rankings, with implications for development financing and regional fiscal capacity across Nigeria.
Top 10 States by Net FAAC Allocation in 2025
1. Delta State – ₦649.67bn
Delta State topped the national FAAC chart in 2025, thanks in large measure to its significant oil output and corresponding derivation entitlements.
2. Rivers State – ₦526.30bn
Rivers retained a strong position behind Delta, its oil sector contribution and commercial activity underpinning substantial revenue inflows.
3. Lagos State – ₦514.56bn
As Nigeria’s commercial capital and most densely populated state, Lagos attracted strong VAT and EMTL revenue, contributing to its high FAAC ranking despite receiving no oil derivation.
4. Akwa Ibom – ₦494.23bn
Akwa Ibom’s oil reserves translated into significant derivation and statutory revenue, bolstering its position among top recipients.
5. Bayelsa State – ₦488.08bn
Another Niger Delta oil producer, Bayelsa secured one of the highest allocations, reflecting its large share of federally distributed oil revenue.
6. Kano State – ₦270.86bn
Kano’s large population and growing consumer economy supported elevated statutory and VAT shares.
7. Oyo State – ₦213.75bn
Oyo’s allocation was boosted by rising local economic activity, including increased VAT contributions.
8. Anambra State – ₦199.88bn
Despite lacking oil derivation revenue, Anambra achieved a top-10 position through steady VAT inflows and commercial vibrancy.
9. Borno State – ₦198.75bn
Borno’s inclusion underscores its growing revenue base, supported principally by statutory and consumption-linked inflows.
10. Ondo State – ₦198.42bn
Rounding out the top ten, Ondo’s relatively strong FAAC intake was driven by both derivation and broader statutory allocations.
What the Rankings Reveal
The 2025 FAAC data affirms that states with substantial oil production — and those with large, dynamic economies — continue to secure dominant shares of Nigeria’s revenue pool. While oil royalties and derivation remain critical in the fiscal architecture, consumption-based taxes and digital transaction levies are increasingly important contributors in more urbanised states.
These rankings reinforce structural disparities in subnational financing and underscore policy debates around equitable revenue distribution, internal revenue mobilisation, and sustainable development financing across all regions of Nigeria.
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