Africazine:
Nigeria’s states saw a significant increase in disbursements from the Federation Account in the first half of 2026, reflecting stronger revenue streams.
In H1 2026, the top 10 states received a combined net FAAC disbursement of N2.16 trillion, a 23.97% increase from N1.74 trillion in H1 2025. Overall, total state net FAAC disbursement rose from N3.61 trillion in 2025 to N4.54 trillion in 2026, marking a 25.77% increase.
Top 10 States by FAAC Disbursement in H1 2026
The top 10 states accounted for 47.47% of total state net FAAC disbursement in H1 2026. Lagos topped the list with N365.78 billion, driven by its substantial VAT contribution. Despite receiving no derivation proceeds, Lagos’ economic scale and commercial activity propelled it to the forefront.
Following Lagos, Delta State received N331.43 billion, benefiting significantly from its oil production status. Rivers State ranked third with N295.99 billion, while Akwa Ibom and Bayelsa followed closely with N270.27 billion and N266.72 billion, respectively. This concentration of disbursement underscores the financial dominance of oil-producing states.
Nigeria: Key figures on FAAC Disbursement
- N2.16 trillion – combined net FAAC disbursement for top 10 states
- N4.54 trillion – total state net FAAC disbursement in H1 2026
- N365.78 billion – disbursement for Lagos State
- N331.43 billion – disbursement for Delta State
- N295.99 billion – disbursement for Rivers State
Analysis of Revenue Distribution Among States
The analysis reveals that the top 10 states received a disproportionate share of the total disbursements. They accounted for 92.66% of all derivation revenue and 53.25% of total net statutory disbursements. This highlights the ongoing reliance on a few states for a significant portion of federal revenues.
While the increase in disbursements was broader across all states, the top states continued to dominate the financial landscape. The data indicates that almost N48 out of every N100 distributed went to just 10 states, emphasizing the need for a more equitable distribution of resources.
Future Considerations for State Disbursements
- Monitoring of revenue distribution trends among states
- Potential policy adjustments to address disparities
- Continued analysis of VAT contributions and their impact on state revenues
Nigeria’s states are experiencing a notable increase in revenue disbursements, highlighting the ongoing financial dynamics in the federation.
