Top 10 Nigerian States With Highest FAAC Allocations in 2025 Revealed
The Federation Account Allocation Committee (FAAC) has published its 2025 disbursement figures, highlighting the states that received the highest revenue shares from Nigeria's federal allocation pool. This annual ranking provides crucial insights into the nation's fiscal landscape and economic drivers.
Oil-Producing States Dominate Top Positions
Delta State emerged as the leading recipient with a substantial allocation of ₦649.67 billion, maintaining its traditional position at the forefront of FAAC distributions. This impressive figure reflects the state's significant oil production activities and the substantial benefits derived from the 13 percent derivation fund established for oil-producing regions.
Following closely, Rivers State secured second place with ₦526.30 billion, demonstrating how petroleum resources continue to shape revenue distributions across Nigeria's south-south geopolitical zone. The state's robust Value Added Tax (VAT) performance, driven by high commercial transaction volumes, further bolstered its financial standing.
Commercial Hubs Show Economic Strength
Lagos State claimed the third position with ₦514.56 billion, representing the highest-ranking non-oil producing state in the 2025 allocations. The southwest commercial powerhouse leveraged its vast consumer market and sophisticated electronic payment infrastructure to generate substantial VAT and Electronic Money Transfer Levy (EMTL) revenues.
Other oil-producing states maintaining strong positions include Akwa Ibom State with ₦494.23 billion and Bayelsa State receiving ₦488.08 billion. These figures underscore how derivation revenue continues to play a pivotal role in the FAAC distribution formula, even for states with relatively smaller populations and consumer markets.
Northern States Demonstrate Fiscal Resilience
Kano State led northern non-oil regions with an allocation of ₦270.86 billion, reflecting how population size and commercial scale contribute to fiscal strength through VAT receipts. This positioning demonstrates the growing economic influence of Nigeria's northern regions beyond traditional oil revenue streams.
Oyo State followed with ₦213.75 billion, while Anambra State recorded ₦199.88 billion without benefiting from oil derivation funds. Both states showcased how commercial activity, trade volumes, and consumer spending patterns can generate substantial revenue shares through the FAAC mechanism.
Completing the Top 10 Rankings
Borno State secured its position with ₦198.75 billion, highlighting the diverse factors considered in Nigeria's allocation formula beyond geographical location or resource endowment. The northeast state's inclusion demonstrates how multiple economic indicators influence fiscal distributions across the federation.
Ondo State closed the top ten list with ₦198.42 billion, benefiting from its status as an oil-producing state despite having a relatively smaller consumer market compared to some peers. The state's allocation illustrates how derivation revenue can enhance financial positions within the FAAC framework.
Broader Fiscal Context
The 2025 FAAC allocations occurred within a broader context of national revenue sharing, with the federal government distributing approximately N1.928 trillion among federal, state, and local government entities for November 2025 alone. This distribution included N747.159 billion to the federal government, N601.731 billion to states, and N445.266 billion to local councils.
Revenue sources for these allocations included statutory revenue, VAT collections, and electronic money transfer levy proceeds, though some categories experienced notable declines compared to previous months. The 2025 rankings reinforce established patterns where oil-producing states and major commercial centers continue to dominate Nigeria's fiscal landscape while demonstrating how diverse economic factors contribute to state revenue generation across different regions.
