Top 10 states with the lowest FAAC allocation in 2025

States with the lowest Federation Account Allocation Committee (FAAC) receipts in 2025 were largely those with smaller economic bases, limited industrial activity, and little or no exposure to oil-related derivation revenue.

Unlike oil-producing or heavily commercialized states, these states depend more heavily on federally shared inflows to finance recurrent expenditure and capital projects.

The figures are based on FAAC data reviewed by Nairametrics Research across all 36 states, covering statutory allocations, net VAT receipts, Electronic Money Transfer Levy (EMTL), and derivation where applicable, regardless of the underlying revenue generation period.

Overall, the pattern reinforces how population size, consumption intensity, and access to oil revenue continue to shape the lower end of Nigeria’s fiscal distribution table.

What the data is saying 

FAAC allocations are determined by a blend of four major revenue components:

• Net Statutory Allocation
• 13% Derivation Revenue (oil-linked)
• Net VAT Allocation
• Electronic Money Transfer Levy (EMTL)

States at the bottom of the ranking are typically those without oil production and with relatively modest internally generated consumption bases. As a result, VAT and statutory inflows form the bulk of their FAAC receipts, while EMTL contributes a smaller but steadily growing share.

Top 10 States with the least FAAC Net Allocation in 2025 

Yobe State — N155.20bn

Yobe recorded one of the lowest FAAC inflows in 2025, receiving N155.20 billion, up from N96.53 billion in 2024, a 60.78% increase representing a disparity of N58.67 billion.

• Net Statutory Allocation: N63.61bn
• Net VAT Allocation: N77.56bn
• EMTL: N4.07bn

The increase was largely driven by stronger VAT and statutory inflows, although the state remains among the least fiscally endowed nationwide.

Taraba State — N153.33bn

Taraba received N153.33 billion in 2025, rising from N99.29 billion in 2024, an increase of N54.04 billion or 54.42%.

• Net Statutory Allocation: N64.66bn
• Net VAT Allocation: N76.06bn
• EMTL: N4.07bn

Despite growth in VAT and statutory receipts, the state continues to rely almost entirely on federal transfers due to the absence of oil-linked derivation revenue.

Nasarawa State — N149.67bn

Nasarawa’s FAAC inflow rose to N149.67 billion in 2025 from N94.43 billion in 2024, a 58.49% increase amounting to N55.24 billion.

• Net Statutory Allocation: N63.94bn
• Net VAT Allocation: N73.27bn
• EMTL: N3.97bn

The growth was primarily consumption-driven, with VAT inflows playing a central role alongside improved statutory distributions.

Kwara State — N145.93bn

Kwara received N145.93 billion in 2025, up from N89.96 billion in 2024, marking a 62.21% rise, one of the sharpest increases within the bottom group.

• Net Statutory Allocation: N53.18bn
• Net VAT Allocation: N80.40bn
• EMTL: N4.25bn

The state’s improvement was largely tied to VAT performance supported by gradual urban expansion and rising consumer activity.

Osun State — N144.94bn

Osun’s FAAC receipts climbed to N144.94 billion from N89.19 billion in 2024, an increase of N55.75 billion or 62.51%.

• Net Statutory Allocation: N44.99bn
• Net VAT Allocation: N85.59bn
• EMTL: N4.80bn

The state’s upward movement was anchored by strong VAT inflows, which formed the largest share of its total receipts.

Ebonyi State — N139.10bn

Ebonyi received N139.10 billion in 2025 compared to N89.69 billion in 2024, a growth of N49.41 billion or 55.07%.

• Net Statutory Allocation: N49.69bn
• Net VAT Allocation: N76.21bn
• EMTL: N4.03bn

Both VAT and statutory allocations contributed meaningfully to the rise, positioning Ebonyi among the fastest-growing states within the lower tier.

Gombe State — N136.44bn

Gombe recorded N136.44 billion in 2025, up from N86.35 billion in 2024, a 58.01% increase amounting to N50.09 billion.

• Net Statutory Allocation: N46.67bn
• Net VAT Allocation: N77.24bn
• EMTL: N4.08bn

VAT remained the dominant contributor, although statutory and EMTL inflows also posted steady gains.

Cross River State — N130.84bn

Cross River received N130.84 billion in 2025, rising from N82.06 billion in 2024, an increase of N48.78 billion or 59.45%.

• Net Statutory Allocation: N37.75bn
• Net VAT Allocation: N79.65bn
• EMTL: N4.47bn

Despite notable growth, the state continues to rely heavily on VAT and statutory inflows in the absence of substantial derivation revenue.

Ekiti State — N130.30bn

Ekiti’s FAAC inflow stood at N130.30 billion in 2025 compared to N85.23 billion in 2024, a 52.88% increase, translating to N45.07 billion.

• Net Statutory Allocation: N38.82bn
• Net VAT Allocation: N78.35bn
• EMTL: N4.17bn

VAT formed the largest share of the state’s receipts, underscoring the importance of consumption-driven revenues.

Ogun State — N124.19bn

Ogun recorded the lowest net FAAC allocation in 2025 at N124.19 billion, rising from N83.32 billion in 2024, an increase of N40.87 billion or 49.06%.

• Net Statutory Allocation: N18.99bn
• Net VAT Allocation: N90.01bn
• EMTL: N5.40bn

Ogun’s allocation structure was heavily skewed toward VAT, which accounted for the overwhelming share of its total receipts.

More Insight 

While the states with the lowest FAAC allocations generally exhibit limited industrial development and a reliance on federal transfers, the Total Gross Amount reveals more nuanced patterns in fiscal dynamics for some of these states, particularly Ogun, Ekiti, Cross River, and Gombe.

• Despite the lowest net allocation of N124.19 billion, Ogun posted a high gross amount of N175.30 billion, largely driven by VAT inflows of N90.01 billion, showing strong reliance on consumption-based revenue.
• Ekiti recorded a gross allocation of N158.96 billion and a net of N130.30 billion, with VAT (N78.35 billion) forming the largest share, highlighting continued dependence on VAT and statutory transfers.
• Cross River received N170.18 billion gross and N130.84 billion net, mainly supported by VAT and statutory allocations due to limited oil-related revenue.
• Gombe posted N161.91 billion gross and N136.44 billion net, with VAT dominating its revenue mix, underscoring steady consumption growth but ongoing reliance on federal inflows.

For the other states in the bottom rankings (such as Yobe, Taraba, and Nasarawa), the year-on-year growth in FAAC receipts is notable but largely driven by improvements in VAT and statutory allocations.

These states, however, remain among the least fiscally endowed in Nigeria, with limited industrial development and a continued reliance on federally shared funds.

Why this matters 

The Total Gross Amount figures show that even the least-funded states can see a substantial increase in their total receipts if consumption-driven taxes like VAT continue to perform well. However, this also means that states with limited diversification into oil, gas, or industry remain at the mercy of federal revenue streams. If federal revenues dip or if consumption slows, these states will be disproportionately affected.

• States like Ogun and Ekiti that see the bulk of their funds come from VAT are less vulnerable to oil price volatility but face challenges tied to national economic trends and consumer behavior.
• On the other hand, states like Cross River and Gombe face more structural vulnerabilities due to their reliance on both VAT and statutory allocations, which are subject to political and economic changes at the federal level.

What You Should Know 

Understanding the dynamics behind FAAC allocations reveals a lot about the underlying economic and fiscal health of Nigeria’s states.

The differences in allocation amounts reflect more than just oil reserves or population size; they point to broader trends in economic activity and how states are positioning themselves for the future:

• While oil-rich states like Delta and Rivers continue to dominate in FAAC allocation, non-oil states such as Lagos and Kano are increasingly benefiting from the growth of commercial activities and population-driven revenue sources like VAT.
• States that heavily rely on oil-derived revenue (e.g., Akwa Ibom and Bayelsa) are at risk of being impacted by fluctuating oil prices, which could affect their ability to fund key services and infrastructure. On the other hand, states with stronger VAT performance, like Lagos, are more insulated from such fluctuations.
• The rise of digital transactions, urbanization, and commercial activity in states like Oyo and Anambra shows that economic diversification into taxable activities like VAT can provide a substantial financial cushion, reshaping Nigeria’s fiscal landscape for the future.