Nigeria's Federation Account Allocation Committee (FAAC) distributed a total of ₦2.55 trillion to the three tiers of government in June 2026, with Delta, Lagos, and Rivers states emerging as the highest beneficiaries. Delta State received ₦86 billion, followed by Lagos State with ₦74.7 billion, and Rivers State with ₦72.09 billion. The allocations reflect the impact of oil derivation revenue and robust tax collections.
Oil Derivation Boosts Delta and Rivers Allocations
Delta and Rivers states benefited significantly from Nigeria's 13% oil derivation principle, a constitutional provision that grants additional revenue to oil-producing states. According to a report by Punch, this mechanism allocates 13% of revenue generated from natural resources extracted within a state's territory. As major oil producers, Delta and Rivers saw their allocations rise due to strong crude oil revenue in June 2026.
The total gross revenue available for distribution in June 2026 was ₦4.5 trillion, one of the highest monthly figures in recent years. This larger revenue pool enabled higher inflows to states and local government councils across the federation.
Lagos Benefits from VAT and Corporate Tax Surge
Unlike Delta and Rivers, Lagos State's high allocation was driven by its status as Nigeria's commercial hub. The state generates a substantial share of the country's Value Added Tax (VAT) and Companies Income Tax (CIT) collections due to its concentration of businesses and financial institutions. A surge in VAT and CIT collections in June 2026 boosted Lagos's allocation to ₦74.7 billion, securing it the second-highest gross allocation.
Analysts note that the strong FAAC performance provides states with additional fiscal space to fund infrastructure projects, pay salaries, and meet development obligations. However, they caution that monthly allocations can fluctuate depending on oil prices, production levels, and tax revenue performance.
Record Revenue Month for Nigeria
The June 2026 FAAC distribution was made possible by a total available gross revenue of ₦4.5 trillion, marking a significant fiscal performance for Nigeria. This strong revenue performance enabled higher inflows to states and local councils, underscoring the central role of oil revenue and economic activity in the federal revenue-sharing formula.
Pascal Oparada, a business editor at Legit.ng with over a decade of experience covering technology, energy, stocks, investment, and the economy, reported on the allocations. He noted that the figures highlight the powerful influence of oil derivation revenue and strong tax collections in shaping monthly allocations.
IGR Rankings: Lagos, Ogun, Enugu Lead
Legit.ng earlier reported that Nigeria's drive for economic self-reliance is gaining momentum, with several states recording impressive Internally Generated Revenue (IGR) performances in the first quarter of 2026. Lagos, Ogun, and Enugu emerged as the strongest revenue-generating states, according to official first-quarter budget performance reports. While Lagos maintained its long-standing dominance, Enugu emerged as a surprise performer, strengthening its reputation as one of the fastest-growing economic hubs in the South-East.
The June 2026 FAAC allocations once again underscore the importance of prudent management, as states must navigate fluctuating federal allocations and growing fiscal responsibilities.
