Delta, Bayelsa, and Akwa Ibom states collectively received approximately 75% of the N321.90 billion oil derivation funds distributed among 11 oil-producing states in Nigeria during the first quarter of 2026. This is according to data analyzed by BudgIT Nigeria, based on figures from the National Bureau of Statistics and the Federation Account Allocation Committee (FAAC).
Top Beneficiaries of Derivation Revenue
Delta State topped the list with an allocation of N101.60 billion, followed by Bayelsa with N71.64 billion and Akwa Ibom with N69.39 billion. Together, these three states accounted for nearly three-quarters of the total derivation revenue shared between January and March 2026.
Rivers State ranked fourth, receiving N46.09 billion during the same period. When combined, the four leading beneficiaries took home almost 90% of the entire N321.90 billion derivation pool.
Other Oil-Producing States' Allocations
Other oil-producing states received significantly lower amounts. Ondo got N9.39 billion, followed by Edo with N7.47 billion and Imo with N7.39 billion. Abia received N5.42 billion, while Anambra collected N3.49 billion.
Enugu and Kogi, the newest states to join the list of oil-producing states, received just N46,991 each. The wide gap in payments reflects the concentration of Nigeria's oil production in a handful of states, with states having larger producing fields and established petroleum infrastructure generally receiving significantly higher derivation revenues.
Production Levels Drive Revenue Disparities
The N101.60 billion allocation to Delta State was more than two million times the amount received individually by Enugu and Kogi. Imo's N7.39 billion allocation is notable given its considerable gas resources and ongoing upstream operations by energy companies in the state.
Under Nigeria's Constitution, states where petroleum resources are extracted are entitled to 13% of the revenue derived from those resources. This principle is intended to compensate oil-producing states for the exploitation of natural resources within their territories. Production levels therefore play a major role in determining how much each state receives, putting states with relatively small or emerging output at a significant disadvantage in the distribution.
Growth in Derivation Revenue Over Time
The amount shared among oil-producing states has increased substantially in recent years. The states collectively received N1.51 trillion in derivation revenue in 2025, compared with N671.9 billion in 2024. The number of beneficiary states has also increased from nine to 11 following the inclusion of Enugu and Kogi. However, their current allocations remain largely symbolic because their oil production is still relatively low.
