Lagos State Secures Highest FAAC Allocation with N55.83 Billion in January 2026
Lagos State has emerged as the top recipient of Federation Account revenue for January 2026, receiving a substantial allocation of N55.83 billion. This amount represents a significant 7.9 per cent of the total N706.47 billion distributed to all thirty-six states by the Federation Accounts Allocation Committee during this period.
Detailed Breakdown of State Allocations
The impressive revenue share for Lagos was primarily driven by its value added tax component, which amounted to N50.12 billion. This figure marks a dramatic increase of 49.68 per cent compared to the N25.21 billion received in December 2025, and shows a 25.06 per cent rise from the N40.07 billion collected in November 2025.
Following Lagos in the allocation rankings, Delta State secured the second position with N47.15 billion, including a VAT revenue portion of N11.43 billion. Akwa Ibom State claimed third place with N35.89 billion, of which N10.82 billion came from VAT collections.
States with Lowest Revenue Shares
At the opposite end of the spectrum, several states received considerably smaller allocations. Ogun State obtained N12.78 billion with a VAT component of N10.01 billion, while Cross River State received N12.64 billion including N8.72 billion from VAT. Most notably, Ekiti State recorded a negative allocation of N-6.69 billion despite receiving a VAT share of N8.96 billion.
Comprehensive National Disbursement Analysis
According to the National Bureau of Statistics report analyzing January 2026 FAAC disbursements, a total sum of N2.59 trillion was shared among the three tiers of government from revenue generated in December 2025. This substantial amount comprised several components:
- N1.63 trillion from the statutory account
- N39.91 billion from the Electronic Money Transfer Levy
- N913.96 billion from Value Added Tax collections
The distribution among government entities revealed that the Federal Government received N653.50 billion, while the thirty-six states collectively obtained N706.47 billion. Local government councils across the nation shared N513.27 billion among their 774 entities.
Additional Revenue Distribution Details
The FAAC allocation report further indicated that oil producing states received N96.08 billion from the 13 per cent derivation fund. Revenue generating agencies also received compensation for their collection efforts, with the Nigeria Customs Service obtaining N27.85 billion, the Federal Inland Revenue Services (now Nigeria Revenue Service) receiving N53.12 billion, and the Nigerian Upstream Petroleum Regulatory Commission getting N23.72 billion as cost of revenue collections.
This comprehensive disbursement reflects the ongoing financial operations of Nigeria's revenue sharing mechanism, with Lagos maintaining its position as the leading economic contributor and beneficiary in the Federation allocation system.
