Lagos State received N365.78 billion in net Federation Account Allocation Committee (FAAC) revenue in the first half of 2026, a 54.39% increase from N236.92 billion in the same period of 2025, making it the top beneficiary among Nigeria's 36 states, according to a report by Punch.
VAT Drives Lagos' Ascent
The surge was primarily driven by VAT receipts, which contributed N344.06 billion, while statutory revenue added only N10.91 billion. Lagos also received N3.31 billion from the Electronic Money Transfer Levy and N5.05 billion in non-oil revenue augmentation, bringing its gross allocation to N476.59 billion.
This growth lifted Lagos from third place in H1 2025 to the top of the ranking, overtaking oil-producing states like Delta and Rivers. The N128.86 billion increase underscores the growing importance of economic activity and consumer spending in Nigeria's revenue-sharing system.
Total State Allocations Rise 25.77%
Collectively, the 36 states received N4.54 trillion in net FAAC revenue in H1 2026, up from N3.61 trillion in H1 2025, an increase of approximately N930 billion or 25.77%. The top 10 beneficiaries received a combined N2.16 trillion, compared with N1.74 trillion a year earlier.
However, their share of total allocations fell slightly from 48.16% to 47.47%, indicating that revenue growth was spread beyond the biggest recipients.
Delta and Rivers Slip Despite Gains
Delta State, which ranked first in H1 2025, dropped to second place with N331.43 billion, up 10.49% from N299.96 billion. Delta remained heavily reliant on oil-related revenue, receiving N229.71 billion in derivation revenue, N262.54 billion in statutory revenue, N63.39 billion in VAT, N510.42 million from the Electronic Money Transfer Levy, and N3.83 billion in non-oil revenue augmentation.
Rivers also fell one position to third, though its allocation rose 11.74% to N295.99 billion from N264.90 billion.
Oil States Still Dominate Derivation
Despite Lagos' breakthrough, oil-producing states continued to dominate derivation revenue. Delta, Akwa Ibom, Bayelsa, Rivers, and Ondo collectively received more than N707.32 billion in derivation revenue in H1 2026.
Akwa Ibom ranked fourth overall with N270.27 billion, up from N230.99 billion, while Bayelsa followed in fifth with N266.72 billion, compared with N229.56 billion. Ondo ranked eighth with N113.04 billion, a 28.29% increase.
Full List of Top 10 States
Kano retained sixth position with N152.57 billion, while Oyo remained seventh after its allocation surged 45.99% to N139.09 billion. Jigawa made one of the biggest jumps, moving from 13th to ninth with N111.61 billion, up 30.36%. Borno completed the top 10 after moving up from 11th place.
The H1 2026 figures point to a changing revenue landscape where VAT and economic base size are increasingly important alongside oil-derived income. Lagos' dramatic rise could signal a broader shift in Nigeria's fiscal landscape, as states with strong commercial and consumption bases increasingly compete with oil-producing states for a larger share of federation revenue.
