13% Derivation: 9 states earned N1.51 trillion in 2025, see list 

Nigeria’s top earners from the 13% oil derivation fund in 2025 were all oil & gas-producing states, reinforcing the continued dominance of crude production in shaping sub-national revenues.

The ranking is based on FAAC net derivation data comparing 2025 receipts with 2024 figures across beneficiary states.

In 2025, all nine beneficiary states recorded strong year-on-year growth compared to 2024, total received by the states was N1.51 trillion, compared to N671.92 billion, reflecting higher distributable oil revenues and improved federation inflows.

This upward trend highlights how fluctuations in crude earnings directly reshape state-level fiscal strength.

The 13% derivation fund is reserved strictly for oil-producing states as compensation for resource extraction and environmental impact, and some oil states earn far more derivation than others despite similar geography.

Overall, the distribution pattern shows that while VAT and statutory allocations influence total FAAC inflows, derivation revenue remains the most decisive fiscal advantage for oil-producing states, in many cases forming a substantial portion of their final net receipts.

Nine states receiving 13% derivation of revenue allocation in Nigeria 

Abia State — N20.51bn 

Abia ranked ninth with N20.51 billion in derivation receipts in 2025, up from N6.69 billion in 2024. This marks an increase of N13.82 billion or 206.5%.

This increase is driven by improved oil-linked inflows, although derivation still represents a smaller portion of the state’s overall revenue mix compared to VAT and statutory receipts.

• Net Statutory Allocation: N81.84bn 
• Net VAT Allocation: N79.24bn 
• EMTL: N5.20bn 

Abia’s numbers show that while derivation has grown sharply, the state remains more dependent on consumption and statutory inflows than oil revenue. Abia’s fiscal profile reflects a gradual strengthening of oil-related earnings but without the dominance seen in core oil-producing peers.

Anambra State — N20.74bn 

Anambra received N20.74 billion in derivation revenue in 2025, compared to N9.22 billion in 2024. This marks an increase of N11.52 billion or 125.1%.

This rise is supported by modest oil-linked inflows, but derivation remains a minor contributor relative to VAT and statutory allocations.

• Net Statutory Allocation: N88.21bn 
•  Net VAT Allocation: N94.15bn 
•  EMTL: N5.83bn 

Anambra’s figures underline its stronger reliance on commercial activity and VAT rather than oil proceeds. The state’s revenue structure highlights a consumption-driven economy where non-oil sources continue to shape fiscal strength.

Imo State — N34.90bn 

Imo posted N34.90 billion in derivation receipts in 2025, rising from N12.48 billion in 2024. This marks an increase of N22.42 billion or 179.7%. The improvement reflects stronger oil-linked earnings, though VAT and statutory inflows still account for a larger share of total receipts.

• Net Statutory Allocation: N86.08bn 
• Net VAT Allocation: N88.54bn 
• EMTL: N5.19bn 

Imo’s numbers show a balanced revenue structure where derivation supplements but does not dominate fiscal inflows. The state benefits from oil receipts but remains largely anchored on federal statutory sharing and consumption taxes.

Ondo State — N39.81bn 

Ondo earned N39.81 billion in derivation revenue in 2025, up from N18.63 billion in 2024. This marks an increase of N21.18 billion or 113.6%. This growth is linked to improved crude-related earnings, giving the state a moderate oil advantage.

• Net Statutory Allocation: N95.20bn 
• Net VAT Allocation: N87.17bn 
• EMTL: N4.85bn 

Ondo’s figures demonstrate a mixed fiscal base where statutory allocation slightly outweighs VAT and derivation contributions. The state maintains a diversified inflow structure, reducing over-reliance on a single revenue stream.

Edo State — N45.32bn 

Edo recorded N45.32 billion in derivation revenue in 2025, compared to N21.72 billion in 2024. This marks an increase of N23.60 billion or 108.7%. The rise is supported by stronger oil-linked receipts, although VAT continues to play a major role in its fiscal composition.

• Net Statutory Allocation: N88.45bn 
• Net VAT Allocation: N91.22bn 
• EMTL: N5.18bn 

Edo’s revenue pattern reveals that consumption taxes remain slightly more influential than derivation inflows. The state’s fiscal strength increasingly reflects commercial activity alongside moderate oil benefits.

Rivers State — N269.78bn 

Rivers maintained a strong fourth position with N269.78 billion in derivation revenue in 2025, rising from N123.37 billion in 2024. This marks an increase of N146.41 billion or 118.7%. This increase is driven significantly by its substantial oil production and related derivation inflows.

• Net Statutory Allocation: N284.24bn 
• Net VAT Allocation: N207.20bn 
• EMTL: N6.31bn 

Rivers’ numbers reflect a powerful blend of oil earnings and commercial strength. The state consistently ranks among Nigeria’s top fiscal performers due to its energy sector dominance and industrial base.

Akwa Ibom State — N303.86bn 

Akwa Ibom received N303.86 billion in derivation revenue in 2025, compared to N133.37 billion in 2024. This marks an increase of N170.49 billion or 127.8%. This rise is driven largely by robust crude production and sustained oil-linked earnings.

• Net Statutory Allocation: N363.35bn 
• Net VAT Allocation: N95.85bn 
• EMTL: N4.96bn 

Akwa Ibom’s figures show that while derivation is massive, statutory inflows also remain exceptionally strong. The state’s fiscal profile reflects deep oil sector dependence supported by steady federal allocations.

Bayelsa State — N320.45bn 

Bayelsa earned N320.45 billion in derivation revenue in 2025, up from N129.73 billion in 2024. This marks an increase of N190.72 billion or 147.0%. This increase is driven overwhelmingly by oil production, making derivation the backbone of its finances.

• Net Statutory Allocation: N367.14bn 
• Net VAT Allocation: N87.98bn 
• EMTL: N3.82bn 

Bayelsa’s numbers highlight one of the highest oil dependencies relative to population size. The state’s fiscal strength is closely tied to crude output, with VAT contributing a comparatively smaller share.

Delta State — N458.65bn 

Delta remained the largest beneficiary of derivation revenue, receiving N458.65 billion in 2025, compared to N216.71 billion in 2024. This marks an increase of N241.94 billion or 111.6%. This increase is driven significantly by its massive crude oil output and sustained derivation inflows.

• Net Statutory Allocation: N504.37bn 
• Net VAT Allocation: N101.42bn 
• EMTL: N5.72bn 

Delta’s numbers reflect the advantage of being Nigeria’s leading oil-producing powerhouse. The state consistently commands the largest derivation share nationwide, reinforcing its dominant fiscal position among all states.

More insight 

Looking beyond absolute figures, derivation revenue as a share of each state’s Total Net FAAC Amount reveals how dependent these states are on oil inflows and how diversified their fiscal structures are when VAT, and EMTL are considered.

• Delta State stands out as the most oil-dependent, with 70.60% of its total net amount coming from derivation revenue. Despite also posting a modest VAT contribution (15.61%), its fiscal strength is still overwhelmingly tied to crude production, while EMTL contributes less than 1%.
• Bayelsa State follows closely with 65.65% of its total net allocation driven by derivation. VAT contributes only 18.03%, and EMTL remains marginal at 0.78%, reinforcing Bayelsa’s heavy structural reliance on oil earnings.
• Akwa Ibom State records 61.48% derivation dependence, confirming oil as its primary fiscal backbone. However, VAT inflow (19.39%) show a slightly broader revenue mix compared to Bayelsa, even though EMTL remains minimal at 1.00%.
• Rivers State presents a more balanced structure relative to its oil-producing peers, with 51.26% of its total net amount tied to derivation. What distinguishes Rivers is its significantly higher VAT share (39.37%), indicating stronger commercial and industrial activity, while EMTL contributes 1.20%.

Edo, Ondo, Imo, Abia, and Anambra all display low-to-moderate oil dependence (10%–23% derivation share) and are largely sustained by VAT, which contributes roughly 44%–47% of total net revenue, while EMTL remains small at about 2%–3%, highlighting fiscally diversified, consumption-driven revenue structures rather than oil-led finances.