Nigeria’s States Share ₦4.587 Trillion in Eight Months Amid Deepening Revenue Rift

The curtains have been drawn back on the inner workings of Nigeria’s federal finances, revealing that the Federation Account Allocation Committee (FAAC) disbursed a staggering ₦4.587 trillion to the nation’s 36 states between January and August 2025. This massive transfer of wealth, while underscoring a period of robust federal revenue, simultaneously highlighted the entrenched financial disparity among Nigeria’s subnational governments, a gap overwhelmingly dictated by the constitutional provision for revenue derivation.

The detailed breakdown of the eight-month distribution confirms the unwavering dominance of Nigeria’s oil-producing states, whose revenue streams are heavily augmented by the 13% Derivation Fund. The analysis places Delta State at the summit of the recipient list, hauling in ₦423.85 billion. Closely trailing this figure is Rivers State, which received ₦388.76 billion, while Akwa Ibom State secured the third position with ₦348.62 billion. Rounding out the top beneficiaries were Bayelsa State, with an allocation of ₦306.88 billion, and the country’s dynamic commercial hub, Lagos State, securing the fifth spot with ₦289.31 billion. The sheer magnitude of the figures going to the Niger Delta states versus others immediately reinforces the economic chasm driven by oil wealth.

Even outside the direct control of crude oil, regional financial performance showed significant variations. In the Northern region, Kano State led the pack with an impressive ₦195.12 billion, placing it sixth nationally. This figure underscores the importance of the non-derivation component of the revenue sharing formula, which factors in metrics like population size and equality of states. Meanwhile, Edo and Ondo States, also benefiting from oil production, ranked seventh and eighth, respectively, receiving ₦176.63 billion and ₦171.85 billion. The top twelve was completed by other populous or strategically important states including Kaduna, Oyo, Katsina, and Borno, further illustrating the interplay of derivation, population density, and other criteria in the distribution matrix.

The mid-tier of the allocation chart featured a cluster of states receiving allocations in the range of ₦120 billion to ₦130 billion. This group included Plateau (₦129.83 billion), Anambra (₦128.81 billion), Kwara (₦126.27 billion), Gombe (₦123.74 billion), and Abia (₦122.78 billion). Following closely within the lower band were states like Enugu, Kebbi, Yobe, Osun, and Ekiti, demonstrating a consistent but significantly constrained fiscal capacity compared to the top tier.

A notable detail in the data is that even the state receiving the least funding, Ogun State, still collected ₦110.35 billion, comfortably above the ₦100 billion benchmark. This fact speaks to the overall robustness of the federal coffers during the period, providing a financial lifeline to all states despite broader national economic pressures and debates over fiscal sustainability. Interestingly, the Federal Capital Territory Administration (FCTA) received a competitive sum of ₦121.85 billion, placing its financial standing in a bracket similar to mid-to-lower-tier states like Enugu and Kebbi.

Financial analysts assert that this sustained pattern of allocation is a direct reflection of the legal and policy framework governing the federation’s revenue sharing, heavily dependent on the mix of derivation benefits, population size, the principle of equality of states, and other indices like internal revenue effort. This persistent trend is set to be the decisive factor in shaping subnational government priorities, including their approach to state-level budgeting, debt management, the pace and scale of infrastructure rollout, and investments in social spending. The concentration of wealth in a few states intensifies the scrutiny on governance, infrastructure delivery, and performance accountability. As the nation grapples with economic diversification and calls for a more equitable fiscal federation continue to mount, stakeholders are increasingly demanding not only greater transparency in the management of these funds but also accelerated efforts to enhance the revenue capacity and fiscal discipline across all tiers of government to mitigate the stark financial inequalities revealed by these figures. The data makes clear that Nigeria’s economic destiny, for now, remains inextricably linked to the fortunes of its oil wealth and the rigidities of its current revenue sharing model.