States with the highest net FAAC allocation in January 2026

Nigeria’s Federation Account Allocation Committee (FAAC) disbursed a total net allocation of N703.26 billion to states in January 2026, reflecting a 7.18% increase in revenue distribution from that of December 2025.

The total gross distributable revenue from December 2025 available for disbursement in January 2026 stood at N2.59 trillion, with N546.14 billion allocated to the Federal Government and N511.17 billion to the Local Government Councils (LGCs), making states the largest recipient among the three levels of government.

This is according to the recent data on FAAC released by the Office of the Accountant-General of the Federation, reported by the National Bureau of Statistics for the period under review.

The latest allocation highlights sustained growth driven by improved statutory revenues, VAT inflows, and electronic transaction levies, with a significant concentration among the top-performing states.

Deduction from gross statutory allocation includes external debt servicing, contractual obligations, and other deductions, while net allocations are augmented by Electronic Money Transfer Levy (EMTL), net share of ecology, and net VAT, and some oil-producing states have 13% derivation revenue.

The data also shows that allocations rose by 32.06% year-on-year from N532.34 billion recorded in January 2025 and increased by 7.18% month-on-month from N656.12 billion in December 2025, signaling continued fiscal momentum.

What the data is saying 

The data reflects a strong expansion in revenue distribution to states, highlighting a concentration pattern

• Net allocations rose by 32.06% year-on-year from N532.34 billion recorded in January 2025.
• The net allocations also increased by 7.18% month-on-month from N656.12 billion in December 2025, signaling continued fiscal momentum.
• The top 10 states account for N314.78 billion, representing 44.76% of the total net allocation for the period under review. This concentration highlights a widening fiscal gap, with a small group of states receiving nearly half of total allocations.
• Lagos State recorded the highest net allocation of N55.83 billion, accounting for 7.94% of the total net allocation.
• Jigawa state recorded the highest year-on-year percentage change of 54.43%, up from N12.68 billion in January 2025 to N19.58 billion in January 2026.
• Ekiti State recorded a negative net allocation of N6.69 billion in January 2026 due to heavy deductions from its gross statutory revenue.

The figures reflect both structural advantages for oil-producing states and rising contributions from consumption-driven economies.

Top 10 States by Net FAAC Allocation – January 2026 

Borno State – N19.06 billion

Borno rounds out the top 10, with growth driven by increased federal allocations and VAT receipts. In January 2026, the state recorded a 46.14% year-on-year increase from the net allocation of N13.04 billion in January 2025, and a 11.56% from N17.09 billion in December 2025.

Other disbursements allocated to Borno include:

• Net Statutory Allocation – N8.12bn
• EMTL – N456.65m
• Net VAT Allocation – N10.25bn
• Total Gross Allocation – N19.37bn

Borno’s allocation growth is driven by higher statutory transfers and VAT receipts. Also, ongoing economic recovery efforts and reconstruction activities have supported increased fiscal inflows.

Katsina State – N19.19 billion

Katsina maintained a steady upward trajectory, supported by higher statutory inflows of N8.33 billion.

The state received N12.95 billion in January 2025, a 48.22% increase, and N16.56 billion (15.89% increase) in December 2025.

Other disbursements allocated to Katsina include:

• Net Statutory Allocation – N6.53bn
• EMTL – N522.68m
• Net VAT Allocation – N11.90bn
• Total Gross Allocation – N20.99bn

Katsina has benefited from increased statutory allocations and improved VAT sharing. Growth reflects enhanced federal revenue inflows and gradual expansion in economic activities.

Jigawa State – N19.58 billion

Jigawa’s strong growth of 54.43% reflects improvements in statutory allocation and VAT distribution.

The net allocation disbursed to the state rose by N6.90 billion from N12.68 billion in January 2025, and a month-on-month growth of 21.51% from N16.11 billion recorded in December 2025.

Other disbursement allocated to Jigawa include:

• Gross Statutory Allocation – N7.58bn
• Net Statutory Allocation – N7.28bn
• EMTL – N452.81m
• Net VAT Allocation – N11.64bn
• Total Gross Allocation – N19.88bn

Jigawa’s allocation gains are largely from statutory revenue distribution. Recent improvements reflect better federal revenue performance and redistribution mechanisms favoring lower-revenue states.

Oyo State – N21.17 billion

Oyo recorded one of the fastest growth rates, supported by rising consumption-driven VAT inflows.

The state received a net allocation of N21.17 billion in January 2026, up by 54.71% YoY from N13.68 billion in the same period of the previous year. The state also rose by 24.23% from N17.04 billion in December 2025.

Other disbursements allocated to Oyo include:

• Gross Statutory Allocation – N7.60bn
• Net Statutory Allocation – N4.59bn
• EMTL – N567.01m
• Net VAT Allocation – N15.80bn
• Total Gross Allocation – N24.18bn

Oyo’s growth is supported by rising consumption and VAT receipts.

Kano State – N26.59 billion

Kano led among non-oil states, driven by strong VAT receipts of N16.32 billion and improved statutory allocation.

The total net allocation disbursed to the state increased YoY by 49.72% (N8.83 billion) from N17.76 billion in January 2025.

Other disbursements allocated to Kano include:

• Gross Statutory Allocation – N10.75bn
• Net Statutory Allocation – N9.26bn
• EMTL – N710.61m
• Net VAT Allocation – N16.32bn
• Total Gross Allocation – N28.08bn

Kano leads among non-oil states due to strong VAT inflows driven by trade and commerce. Increased market activity, improved tax compliance, and expansion in informal sector capture have contributed to higher allocations.

Rivers State – N35.08 billion

Rivers was the only state in the top five to record a year-on-year decline of 21.06%, largely due to lower derivation inflows compared to the prior year.

The total net allocation disbursed to the state dropped YoY by N9.36 billion from N44.45 billion in January 2025, and a 7.06% decline from N37.75 billion in December 2025.

Other disbursements allocated to Rivers include:

• 13% Share of Net Derivation – N15.24bn
• Gross Statutory Allocation – N22.55bn
• Net Statutory Allocation – N17.52n
• EMTL – N567.50m
• Net VAT Allocation – N16.89bn
• Total Gross Allocation – N40.21bn

Rivers remain heavily dependent on oil derivation. However, recent declines in derivation inflows—possibly linked to production disruptions or price adjustments—have outweighed gains from other revenue sources.

Bayelsa State – N35.24 billion

Bayelsa recorded relatively flat year-on-year growth, reflecting stable but less volatile derivation earnings.

The state received a total net allocation of N35.24 billion in the review period, posting a marginal YoY growth of 0.33% from N35.12 billion in January 2025.

Other disbursement allocated to Bayelsa include:

• 13% Share of Net Derivation – N21.03bn
• Gross Statutory Allocation – N27.03bn
• Net Statutory Allocation – N25.44bn
• EMTL – N346.84m
• Net VAT Allocation – N9.37bn
• Total Gross Allocation – N36.91bn

Bayelsa’s earnings are largely driven by derivation revenue. Recent stability in oil production has kept allocations steady, though limited growth reflects minimal expansion in output compared to peers.

Akwa Ibom State – N35.89 billion

Akwa Ibom continues to benefit from oil derivation of N18.94 billion, though monthly inflows decline by 16.28% from N42.87 billion in December 2025.

The state recorded an increase of N3.75 billion (11.66%) YoY from N35.14 billion in January 2025.

Other disbursement allocated to Akwa Ibom include:

• Gross Statutory Allocation – N25.75bn
• Net Statutory Allocation – N24.52bn
• EMTL – N451.41m
• Net VAT Allocation – N10.82bn
• Total Gross Allocation – N37.21bn

The state continues to benefit from oil derivation inflows. Increased upstream activity and relatively stable oil output contributed to the year-on-year growth, despite weaker monthly inflows.

Delta State – N47.15 billion

Delta’s allocation remains heavily influenced by derivation revenue of N30.72 billion, although it recorded a decline of 13.82% compared to N54.72 billion in December 2025.

On a yearly basis, the state recorded an increase of 20.6% from N39.10 billion in January 2025.

Other disbursements allocated to Delta include:

• Gross Statutory Allocation – N37.60bn
• Net Statutory Allocation – N35.12bn
• EMTL – N510.42m
• Net VAT Allocation – N11.43bn
• Total Gross Allocation – N49.73bn

Delta’s allocation remains anchored on oil derivation revenue. Recent improvements in crude production levels and export receipts supported year-on-year growth, although short-term fluctuations led to a monthly decline.

Lagos State – N55.83 billion

Lagos maintained its top position, supported by the highest VAT contribution of N50.12 billion and strong EMTL inflows of N3.31 billion, reflecting its status as Nigeria’s commercial hub.

Lagos state recorded the highest increase of 65.24% month-on-month (N22.04 billion) from N33.79 billion in December 2025. The state also grew by 43.58% from N38.88 billion in January 2025.

Other disbursements allocated to Lagos include:

• Gross Statutory Allocation – N9.08bn
• Net Statutory Allocation – N2.14bn
• EMTL – N3.31bn
• Net VAT Allocation – N50.12bn
• Total Gross Allocation – N73.65bn

Lagos continues to benefit from its position as Nigeria’s commercial hub, with strong VAT performance driven by increased consumption, digital payments, and business activities. Recent improvements in electronic transaction volumes and tax efficiency have further boosted EMTL and VAT collections.