Five States Get More Federation Revenue Than 20 Others Combined
The five states that received the highest allocations from the Federation Account in May 2026 collectively got N317.47 billion, exceeding the combined N310.13 billion shared by the 20 states with the lowest allocations.
An analysis of figures contained in the June revenue allocation report of the Office of the Accountant-General of the Federation (OAGF), which became available in August, showed that Rivers, Delta, Akwa Ibom, Lagos and Bayelsa were the biggest beneficiaries.
Rivers topped the list with a net allocation of N70.32 billion, followed by Delta with N66.44 billion, Akwa Ibom with N62.09 billion, Lagos with N60.35 billion and Bayelsa with N58.28 billion.
Together, the five states accounted for N317.47 billion, representing about 37.4 per cent of the N848.38 billion shared among Nigeria’s 36 states for May.
By comparison, the 20 states with the lowest allocations received a combined N310.13 billion — meaning that five states alone received N7.34 billion more than 20 other states combined.
States with the lowest allocations
Ekiti recorded the lowest allocation at N13.13 billion, followed by Cross River with N13.21 billion.
Others included Gombe and Ogun, which received about N13.98 billion each; Kwara, N14.35 billion; Osun, N14.44 billion; Ebonyi, N14.64 billion; Bauchi, N15.07 billion; Nasarawa, N15.31 billion; Plateau, N15.83 billion; and Yobe, N15.89 billion.
The remaining states among the 20 lowest beneficiaries were Enugu (N16.20 billion), Adamawa (N16.37 billion), Kogi (N16.46 billion), Edo (N16.60 billion), Zamfara (N16.69 billion), Kaduna (N16.72 billion), Kebbi (N16.93 billion), Sokoto (N17.03 billion) and Niger (N17.28 billion).
The disparity becomes even more pronounced when the five highest beneficiaries are compared directly with the five lowest. Ekiti, Cross River, Ogun, Gombe and Kwara collectively received N68.65 billion — about 4.6 times less than the N317.47 billion allocated to the top five.
Derivation, VAT drive differences
The wide gap was largely influenced by the different components of Federation Account revenue, particularly the 13 per cent derivation allocation for oil-producing states and Value Added Tax (VAT).
Delta received N50.25 billion in derivation revenue, while Akwa Ibom got N45.98 billion and Bayelsa N42.18 billion. Rivers received N31.29 billion from derivation.
Lagos, despite not benefiting from the 13 per cent derivation allocation, ranked fourth because of its substantial VAT revenue.
The state received N55.25 billion in net VAT after a deduction of N9.89 billion, significantly boosting its overall allocation to N60.35 billion.
The figures show that while statutory allocations are generally closer across the states, derivation and VAT revenues can dramatically alter the final position of individual states.
Rivers recorded N38.85 billion in net statutory allocation, while Delta and Akwa Ibom received N58.14 billion and N54.61 billion respectively after accounting for their respective derivation components and deductions. Bayelsa recorded N50.15 billion.
Lagos, meanwhile, had a comparatively low net statutory allocation of N4.73 billion after an external debt deduction. However, its large VAT receipts pushed its total net allocation to N60.35 billion.
More than fivefold gap
At the bottom of the table, Ekiti received N13.13 billion, the lowest among the 36 states, while Rivers received N70.32 billion.
This means Rivers received more than five times the amount allocated to Ekiti during the month.
Overall, the figures highlight the significant differences in federally distributed revenues among Nigeria’s states.
The Federation Account pools federally collected revenues for distribution to the Federal Government, states and local governments through the Federation Account Allocation Committee (FAAC).
The distributable revenue includes statutory revenue, VAT and other streams, with deductions, interventions and other obligations taken into account before the final allocations are shared.
As a result, oil-producing states can receive substantial additional revenue through the derivation principle, while states with strong economic activity and higher VAT contributions can also benefit significantly from the VAT component.
The May 2026 figures therefore underscore how the structure of Nigeria’s revenue-sharing system continues to produce substantial differences in the amount available to individual states.
