Nigeria’s top 10 states received a combined N2.16 trillion in net allocations from the Federation Account in the first half of 2026, up from N1.74 trillion recorded in the corresponding period of 2025.
The increase represents a year-on-year growth of 23.97%, or N416.83 billion, reflecting stronger distributable revenues from statutory revenue, Value Added Tax (VAT), derivation revenue, Electronic Money Transfer Levy (EMTL) and other revenue streams.
However, the growth recorded by the top 10 states was slightly slower than the increase in total disbursements to all 36 states.
Total net FAAC disbursements to state governments rose from N3.61 trillion in H1 2025 to N4.54 trillion in H1 2026, representing a 25.77% year-on-year increase.
As a result, the top 10 states accounted for 47.47% of total net FAAC disbursements to states during the period, compared with 48.16% in H1 2025.
This means that almost N48 out of every N100 distributed to state governments went to just 10 states.
The figures suggest that while the leading states continued to command a substantial share of federally distributed revenues, the growth in allocations was relatively broader across the states in the first half of 2026.
Lagos emerged as the biggest beneficiary, despite receiving no derivation revenue, as its large economic base and substantial VAT contribution pushed it to the top of the ranking.
The top 10 states accounted for 92.66% of all derivation revenue distributed nationwide, 53.25% of total net statutory disbursements, 44.02% of net VAT disbursements and 41.04% of EMTL distributions.
They also accounted for 46.49% of total gross disbursements to state governments during the period.
Oil-producing states remained prominent in the rankings, with Delta, Akwa Ibom, Bayelsa, Rivers and Ondo collectively receiving more than N707.32 billion in derivation revenue, accounting for nearly all derivation funds shared during the period.
Meanwhile, Kano and Oyo secured high positions largely on the strength of VAT receipts and their broad-based economic activity rather than oil production.
Borno completed the top 10 ranking with N109.65 billion in net FAAC disbursement in H1 2026, up 24.69% from N87.94 billion in H1 2025.
The state received N48.69 billion in net statutory disbursement, N53.57 billion in net VAT allocation and N4.69 billion in non-oil revenue augmentation.
Borno’s increase was enough to move it from 11th position in H1 2025 into the top 10 in the latest ranking.
Jigawa ranked ninth with N111.61 billion, compared with N85.62 billion in the previous year.
Its allocation increased by N25.99 billion, representing a 30.36% year-on-year rise, making it the biggest improvement in ranking among the top 10 states.
Jigawa received N49.01 billion in net statutory disbursement, N55.89 billion in net VAT and N4.22 billion in non-oil revenue augmentation.
Ondo ranked eighth with N113.04 billion, up from N88.11 billion in H1 2025.
The state’s allocation increased by N24.93 billion, representing a 28.29% year-on-year rise.
Ondo benefited from N21.73 billion in derivation revenue, alongside N57.12 billion in net statutory disbursement, N50.58 billion in net VAT and N3.51 billion in non-oil revenue augmentation.
Oyo retained seventh position with N139.09 billion in H1 2026, compared with N95.28 billion a year earlier.
The state recorded a 45.99% year-on-year increase of N43.82 billion, making it the second-fastest-growing state among the top 10 after Lagos.
Oyo’s performance was driven largely by its N97.09 billion net VAT allocation, the second-highest VAT figure among the top 10 states after Lagos.
The state also received N34.92 billion in net statutory disbursement and N4.23 billion in non-oil revenue augmentation.
Kano retained sixth position with N152.57 billion, compared with N120.04 billion in H1 2025.
Its allocation increased by N32.52 billion, representing a 27.09% year-on-year rise.
Kano received N79.42 billion in net VAT, the highest among northern states in the ranking, as well as N63.49 billion in net statutory disbursement and N5.98 billion in non-oil revenue augmentation.
The state’s strong position reflects its large population and importance as a major commercial centre in northern Nigeria.
Bayelsa ranked fifth with N266.72 billion, up from N229.56 billion in H1 2025.
The state recorded a year-on-year increase of N37.16 billion, or 16.19%.
Bayelsa’s allocation was significantly supported by N169.26 billion in derivation revenue. It also received N203.91 billion in net statutory disbursement and N58.13 billion in net VAT.
The state retained its fifth position despite the increase in its allocation.
Akwa Ibom remained in fourth place with N270.27 billion, compared with N230.99 billion in H1 2025.
Its allocation increased by N39.28 billion, representing a 17% year-on-year rise.
The state received N169.29 billion in derivation revenue, N207.73 billion in net statutory disbursement and N57.13 billion in net VAT.
Its significant derivation receipts continued to provide a major boost to its position among the country’s highest-earning states from the Federation Account.
Rivers State ranked third with N295.99 billion in H1 2026, compared with N264.90 billion in H1 2025.
The state recorded an increase of N31.09 billion, or 11.74%, during the period.
Rivers slipped from second position in H1 2025 to third place in H1 2026 as Lagos moved ahead.
The state received N117.33 billion in 13% derivation revenue, reflecting its status as a major oil-producing state.
Rivers also recorded N145.49 billion in net VAT, second only to Lagos among the states in the ranking, alongside N144.63 billion in net statutory disbursement and N4.07 billion in non-oil revenue augmentation.
Delta State ranked second with N331.43 billion, compared with N299.96 billion in H1 2025.
Its allocation increased by N31.47 billion, representing a 10.49% year-on-year rise.
Delta dropped from first position in H1 2025 but remained one of the largest beneficiaries of the Federation Account, largely because of its oil-producing status.
The state received N229.71 billion in derivation revenue, the highest derivation allocation among the top 10 states.
It also received N262.54 billion in net statutory disbursement, N63.39 billion in net VAT, N510.42 million from EMTL and N3.83 billion in non-oil revenue augmentation.
Lagos State emerged as the biggest recipient of net FAAC disbursement in H1 2026, receiving N365.78 billion compared with N236.92 billion in H1 2025.
The allocation increased by N128.86 billion, representing a 54.39% year-on-year rise and the largest absolute increase among the top 10 states.
Lagos also accounted for 16.96% of total net FAAC disbursements to the 36 states during the period.
The performance marked a significant improvement in the state’s ranking, as Lagos moved from third place in H1 2025 to first place in H1 2026.
Unlike the oil-producing states at the top of the ranking, Lagos received no derivation revenue. Its position was instead driven overwhelmingly by VAT, reflecting its concentration of formal businesses, commercial activity and consumer spending.
The state received N344.06 billion in net VAT, N10.91 billion in net statutory disbursement, N3.31 billion from EMTL and N5.05 billion in non-oil revenue augmentation.
Its total gross amount stood at N476.59 billion.
The latest figures highlight the changing dynamics of FAAC distribution among Nigeria’s states.
While oil-producing states continue to benefit significantly from the 13% derivation fund, states with large and active consumer economies are increasingly relying on VAT to secure substantial allocations from the Federation Account.
Lagos’ emergence as the largest recipient in H1 2026 demonstrates the growing importance of economic activity and VAT contribution alongside traditional oil-related revenues.
With total net FAAC disbursements to states rising by 25.77% to N4.54 trillion, the distribution of federally collected revenues is increasingly being shaped by a combination of oil production, statutory allocations, consumption activity and states’ contribution to national revenue pools.
