The latest financial data from Nigeria's revenue distribution reveals significant disparities in how much each state receives from the Federation Account Allocation Committee, with Ebonyi State emerging at the bottom of the allocation list for the first eight months of 2025.
Stark Contrast Between Highest and Lowest Earners
According to figures released by the National Bureau of Statistics, the FAAC disbursed a substantial ₦4.587 trillion to Nigeria's 36 states between January and August 2025. The gap between the highest and lowest recipients was remarkably wide, underscoring long-standing revenue inequalities across the federation.
Delta State claimed the top position with an impressive ₦423.85 billion allocation, followed closely by Rivers State which received ₦388.76 billion. Akwa Ibom State completed the top three with ₦348.62 billion in FAAC disbursements during this period.
These three oil-rich states collectively received more than ₦1 trillion in just eight months, demonstrating the continued financial advantage enjoyed by states benefiting from derivation-based revenue sharing.
Ebonyi's Position at the Bottom
At the opposite end of the spectrum, Ebonyi State found itself among the lowest recipients, collecting only ₦112.19 billion during the same January to August 2025 timeframe. Only Ogun State received less, with its allocation of ₦110.35 billion placing it at the absolute bottom of the distribution table.
Other states that received relatively low allocations included Nasarawa (₦113.22 billion), Kogi (₦114.27 billion), and Taraba (₦115.03 billion). The Federal Capital Territory received ₦121.85 billion, placing it in the lower half of the distribution list.
Patterns and Implications of Revenue Distribution
The allocation figures highlight Nigeria's persistent imbalance in state revenue profiles, a pattern largely influenced by three key factors: derivation entitlements, population size, and fiscal dependency ratios. Most northern states and some southeastern states continue to receive significantly lower FAAC allocations primarily due to their inability to benefit from the 13 percent oil derivation fund and their relatively smaller economic activity levels.
Recent fiscal developments have followed this established trend. In 2024, FAAC disbursements increased dramatically amid higher oil receipts and improved tax collection by the Federal Inland Revenue Service. Total payouts reached more than ₦15 trillion that year, creating expectations of sustained growth throughout 2025.
Despite these substantial federal transfers, many states remain heavily dependent on FAAC allocations, with several unable to fund capital projects or consistently pay salaries without these regular federal transfers.
The growing political debate over restructuring and fiscal autonomy has been significantly shaped by these allocation discrepancies. Several state governments, particularly in the South-West and some parts of the North-West, have renewed calls for improved internally generated revenue and reforms aimed at reducing over-reliance on federal allocations.
Meanwhile, oil-producing states continue to advocate for stricter enforcement against crude theft, arguing that production losses directly reduce their monthly allocations. The Federal Government has repeatedly promised enhanced surveillance and better pipeline protection measures to stabilize revenue inflows to the federation account.
