In 2025, the pattern of Nigeria’s federal revenue distribution continued to reflect long-standing fiscal realities, with oil-producing states and major economic hubs dominating allocations from the Federation Account Allocation Committee (FAAC).
According to reviewed FAAC data, the Top 10 states by net allocation for the year were led by Delta, with several southern states and populous commercial centres featured prominently across the list.
Nairametrics Delta State emerged as the largest recipient of FAAC funds in 2025, receiving a total net allocation of N649.67 billion, a figure that underscores its heavy reliance on oil revenue and the impact of the derivation formula within the federation’s revenue-sharing framework.
Rivers State secured N526.30 billion, reflecting its position as another key oil-producing state in the Niger Delta region.
Lagos State, Nigeria’s commercial nerve centre and most populous state, recorded N514.56 billion in FAAC receipts, bolstered by strong statutory allocations and contributions from consumption-driven revenue streams such as Value Added Tax
Akwa Ibom and Bayelsa also ranked within the top five, receiving N494.23 billion and N488.08 billion respectively, further highlighting the predominance of oil-linked revenues in the federation account.
Kano State, a major northern economic hub, secured N270.86 billion, benefitting largely from statutory allocations under population and demographic formulas.
Oyo State followed with N213.75 billion, reflecting its sizable population and domestic economic activity. Among the states rounding out the top ten were
Anambra with N199.88 billion, Borno at N198.75 billion, and
Ondo State with N198.42 billion. These figures demonstrate how both oil linkage and broad economic participation contribute to FAAC outcomes, even for states outside the core oil-producing region.
Economists and fiscal analysts note that the distribution pattern seen in 2025 reinforces longstanding regional disparities, where oil revenue remains a significant factor but is increasingly complemented by VAT inflows and other federally shared revenue sources.
1.Delta State – ₦649.67 billion
2.Rivers State – ₦526.30 billion
3.Lagos State – ₦514.56 billion
4.Akwa Ibom – ₦494.23 billion
5.Bayelsa State – ₦488.08 billion
6.Kano State – ₦270.86 billion
7.Oyo State – ₦213.75 billion
8.Anambra – ₦199.88 billion
9.Borno State – ₦198.75 billion
10.Ondo State – ₦198.42 billion
This dynamic continues to shape subnational finances, influencing how states fund public services, infrastructure, and recurrent obligations.
Image Credit: Nairametrics
Source: Nairametrics
