In 2025, oil-producing states and major commercial centers once again topped the list of Federation Account Allocation Committee (FAAC) payments. Lagos, Delta, and Rivers led in gross receipts.
These figures are based on FAAC data from all 36 states, covering statutory allocations, derivation revenue, VAT, and other federally shared inflows, regardless of the transaction period.
Key Trends in Revenue Distribution
The data highlights the continued importance of oil revenue in state finances. However, the growing influence of consumption, digital transactions, and population-driven statutory formulas is becoming more evident.
What the Data Reveals
In 2025, five key revenue components determined the gross and net FAAC allocations for each state:
- 13% derivation revenue (net).
- Gross and net statutory allocations.
- Electronic Money Transfer Levy (EMTL).
- Net VAT allocation.
Oil-producing states benefited significantly from derivation revenues, while urban states saw stronger inflows from VAT and EMTL. When combined, these revenue sources defined the gross and net allocations for each state after deductions.
As a result, the Top 10 states received a large share of FAAC inflows in 2025, further widening fiscal disparities between states.
Top 10 States by FAAC Net Allocation in 2025
An analysis of the Top 10 states with the highest net FAAC allocations reveals trends driven by oil production, population size, geography, and federal revenue-sharing formulas.
Ondo State’s Growth in FAAC Allocation
Ondo ranked 10th in 2025, with a net allocation of N198.42 billion—a 51.55% increase from its 2024 allocation of N130.93 billion, reflecting a difference of N67.49 billion.
- Net Statutory Allocation: N95.20 billion
- Net VAT Allocation: N87.17 billion
- EMTL: N4.85 billion
This growth was primarily due to higher net statutory inflows and improved VAT performance, driven by increased national consumption. Additionally, higher EMTL receipts reflected a rise in electronic transactions and oil-linked federal revenues.
