FAAC: Five States Collect N317.5bn as Allocation, Exceed 20 Others Combined

Emmanuel Addeh in Abuja The five states with the highest Federation Account allocations in May 2026 collectively received N317.47 billion, more than the combined N310.13 billion shared by 20 states with the lowest allocations, highlighting the wide disparity in federally distributed revenues among Nigeria’s 36 states. A THISDAY analysis of the figures contained in the June revenue allocation report of the Office of the Accountant General of the Federation (OAGF), but made available this August, showed that Rivers, Delta, Akwa Ibom, Lagos and Bayelsa were the five biggest beneficiaries during the month. Rivers received the highest net allocation of N70.32 billion, followed by Delta with N66.44 billion, Akwa Ibom with N62.09 billion, Lagos with N60.35 billion and Bayelsa with N58.28 billion. Together, the five states received N317.47 billion, the data showed. By comparison, the 20 states at the bottom of the allocation table collectively received N310.13 billion, meaning that five states alone collected N7.34 billion more than 20 other states combined. The 20 lowest-collecting states were: Ekiti (N13.13 billion), Cross River (N13.21 billion), Gombe (N13.98 billion), Ogun (N13.98 billion), Kwara (N14.35 billion), Osun (N14.44 billion), Ebonyi (N14.64 billion), Bauchi (N15.07 billion), Nasarawa (N15.31 billion), Plateau (N15.83 billion) and Yobe (N15.89 billion). Other low revenue collectors included: Enugu (N16.20 billion), Adamawa (N16.37 billion), Kogi (N16.46 billion), Edo (N16.60 billion), Zamfara (N16.69 billion), Kaduna (N16.72 billion), Kebbi (N16.93 billion), Sokoto (N17.03 billion) and Niger (N17.28 billion). A further review indicated that the contrast is even sharper when the top five are compared with the five states that received the least during the month. Ekiti, Cross River, Ogun, Gombe and Kwara collectively received only N68.65 billion, meaning the five biggest recipients received about 4.6 times the amount that went to the five lowest beneficiaries. The concentration of revenue among the leading beneficiaries was largely driven by the different components of the Federation Account allocation, particularly the 13 per cent derivation revenue received by oil-producing states and the Value Added Tax (VAT) component. Delta, for instance, received N50.25 billion in derivation revenue, while Akwa Ibom received N45.98 billion and Bayelsa N42.18 billion. Rivers received N31.29 billion from derivation. Lagos, which does not receive the 13 per cent derivation allocation, nevertheless ranked fourth among the states because of its large VAT allocation. The state received N55.25 billion as net VAT after a deduction of N9.89 billion, contributing substantially to its N60.35 billion total net allocation. The figures also showed how the different revenue components can substantially alter the position of states in the allocation table. While statutory allocations were generally much closer across the states, derivation and VAT created a significant gap between the largest and smallest recipients. For instance, the data revealed that Rivers had a net statutory allocation of N38.85 billion, compared with N58.14 billion for Delta and N54.61 billion for Akwa Ibom after their respective derivation components and deductions. Bayelsa had N50.15 billion, while Lagos had a net statutory allocation of only N4.73 billion after its external debt deduction. But according to the information from the OAGF, despite its comparatively low statutory component, Lagos’ total net allocation reached N60.35 billion because of its VAT receipts. At the other end of the distribution, Ekiti received N13.13 billion, the lowest allocation among the states, followed by Cross River with N13.21 billion. Ogun and Gombe received about N13.98 billion each, while Kwara received N14.35 billion. The difference between the highest and lowest beneficiaries was therefore substantial, with Rivers’ N70.32 billion allocation being more than five times Ekiti’s N13.13 billion. The OAGF report showed that the 36 states collectively received N848.38 billion as their total net allocation for May 2026, shared in June. Of that amount, the five leading beneficiaries accounted for about 37.4 per cent. The figures suggested that the distribution of federally collected revenue remains heavily differentiated across the states, with states benefiting from substantial derivation revenues or large VAT receipts receiving significantly higher allocations than states without comparable revenue components. The gap was particularly evident in the comparison between the five largest beneficiaries and the 20 smallest. While the former group represented only about 14 per cent of the 36 states, its combined allocation exceeded that of more than half of the states in the federation. Nigeria’s revenue-sharing system pools federally collected revenues into the Federation Account for distribution among the federal government, state governments and local governments through the Federation Account Allocation Committee (FAAC). The distributable pool comprises statutory revenue, VAT and other revenue streams, while deductions, interventions and other statutory obligations are taken into account in determining the amount ultimately shared. Consequently, states with significant oil and gas production receive additional derivation revenue, while states with large economic activities and value-added contributions can benefit substantially from the VAT component.