Lagos overtakes oil states as top FAAC earner with N365.78 billion

Nigeria’s states received significantly higher disbursements from the Federation Account in H1 2026, reflecting stronger distributable revenues from statutory revenue, Value Added Tax (VAT), derivation revenue, Electronic Money Transfer Levy (EMTL) and other revenue streams.

An analysis of the gross revenue disbursement by Federation Account Disbursement Committee in H1 2026 shows that the top 10 states received a combined net FAAC disbursement of N2.16 trillion, compared with N1.74 trillion in the same period of 2025, representing a year-on-year increase of 23.97% or N416.83 billion.

However, the increase among the top 10 states was slightly slower than the growth in total disbursements to all 36 states. Total state net FAAC disbursement increased from N3.61 trillion in the same period in 2025 to N4.54 trillion in H1 2026, representing a 25.77% increase.

The top 10 therefore accounted for 47.47% of total state net FAAC disbursement in the review period of 2026, compared with about 48.16% in the prior period.

This means that almost N48 out of every N100 distributed to state governments went to just 10 states.

This suggests that while the leading states continued to command a substantial share of federally distributed revenues, the increase in disbursements was relatively broader across the states in H1 2026.

Notably, Lagos, despite receiving no derivation proceeds, topped the rankings with N365.78 billion due to its overwhelming VAT contribution and economic scale.

What the data is saying

A closer glance at the components of FAAC distribution shows how concentrated disbursements remain among a handful of states, as the top 10 states accounted for:

• 92.66% of all derivation revenue distributed nationwide.
• 53.25% of total net statutory disbursements.
• 44.02% of all net VAT disbursements.
• 41.04% of EMTL distributions.
• 46.49% of total gross disbursements to states.

It is worth noting that the H1 2026 data reflect the continued prominence of oil-producing states as Delta, Akwa Ibom, Bayelsa, Rivers and Ondo collectively accounted for a substantial portion of the top 10 disbursement, having received more than N707.32 billion in derivation revenue, accounting for nearly all derivation funds shared during the period.

Conversely, Kano and Oyo secured high positions largely on the strength of VAT disbursements and broad-based economic activity rather than oil production.

Below are the top 10 States by Net FAAC Disbursement – H1 2026

10. Borno — N109.65 billion

Borno State completed the top 10 in H1 2026, receiving N109.65 billion, marking a 24.69% increase from N87.94 billion in H1 2025.

The state’s disbursement was supported by a N48.70 billion net statutory disbursement, N53.57 billion VAT share, and N4.69 billion augmentation from non-oil revenue.

The growth was sufficient to move Borno into the top 10 rankings from 11th position in the previous year.

• Net Statutory Disbursement: N48.69 billion
• Non-oil revenue augmentation: N4.69 billion
• Net VAT Disbursement: N53.57 billion
• Total Gross Amount: N117.90 billion

9. Jigawa — N111.61 billion

Jigawa recorded the biggest improvement in ranking among the top 10 states, rising from 13th place in H1 2025 to ninth in H1 2026.

The state received N111.61 billion, up from N85.62 billion in the previous year.

Its disbursement therefore increased by N25.99 billion or 30.36% year-on-year.

Jigawa’s H1 2026 rise was driven by stronger statutory disbursements and a sizeable VAT share of N55.89 billion.

• Net Statutory Disbursement: N49.01 billion
• Non-oil revenue augmentation: N4.22 billion
• Net VAT Disbursement: N55.89 billion
• Total Gross Amount: N113.86 billion

8. Ondo — N113.04 billion

Ondo State recorded one of the biggest improvements in the ranking, moving from 10th place in H1 2025 to eighth in H1 2026.

Its net FAAC disbursement rose to N113.04 billion, compared with N88.11 billion in H1 2026, representing an increase of N24.93 billion or 28.29% year-on-year.

Ondo benefited from both derivation revenue and statutory disbursements. The state received N21.73 billion in derivation inflow, providing an important boost to overall receipts.

• Net Statutory Disbursement: N57.12 billion
• Non-oil revenue augmentation: N3.51 billion
• Net VAT Disbursement: N50.58 billion
• Total Gross Amount: N120.96 billion

7. Oyo — N139.09 billion

Oyo State ranked seventh, retaining the same position it held in H1 2025.

The state received N139.10 billion in H1 2026, a significant 45.99% increase from N95.28 billion in H1 2025, making Oyo the second-fastest-growing state among the top 10 after Lagos.

Oyo’s disbursement was driven largely by its N97.09 billion net VAT disbursement, the second-highest VAT figure among the 10 states after Lagos, alongside improved statutory and non-oil revenue components.

The strong increase pushed Oyo’s H1 disbursement significantly above its 2025 level, although it did not alter its seventh-place ranking.

• Net Statutory Disbursement: N34.92 billion
• Non-oil revenue augmentation: N4.23 billion
• Net VAT Disbursement: N97.09 billion
• Total Gross Amount: N155.59 billion

6. Kano — N152.57 billion

Kano State retained sixth position, receiving N152.57 billion in H1 2026, compared with N120.04 billion in H1 2025.

Its disbursement increased by N32.52 billion, equivalent to 27.09% year-on-year.

Kano also ranked sixth in H1 2025, meaning its position remained unchanged.

The state’s disbursement was supported by a strong N79.42 billion VAT share, the highest among northern states within the ranking. Kano also recorded N5.98 billion in non-oil revenue augmentation, the largest among the top 10 states.

Its position reflects both its large population and its importance as northern Nigeria’s commercial center.

• Net Statutory Disbursement: N63.49 billion
• Non-oil revenue augmentation: N5.98 billion
• Net VAT Disbursement: N79.42 billion
• Total Gross Amount: N161.79 billion

5. Bayelsa — N266.72 billion

Bayelsa State ranked fifth in H1 2026, unchanged from its fifth position in H1 2025.

The state received N266.72 billion, compared with N229.56 billion in the corresponding period of 2025, representing an increase of N37.16 billion or 16.19% year-on-year.

Bayelsa’s disbursement was significantly supported by its N169.26 billion derivation revenue, while its net statutory disbursement stood at N203.91 billion and net VAT disbursement at N58.13 billion.

Despite its relatively smaller population, Bayelsa’s status as a major crude oil-producing state continued to drive substantial disbursements.

• Net Statutory Disbursement: N203.91 billion
• Non-oil revenue augmentation: N3.34 billion
• Net VAT Disbursement: N58.13 billion
• Total Gross Amount: N273.24 billion

4. Akwa Ibom — N270.27 billion

Akwa Ibom retained fourth place, with a H1 2026 net disbursement of N270.27 billion, compared with N230.99 billion in H1 2025.

The state’s disbursement increased by N39.28 billion or 17.00% year-on-year.

Akwa Ibom also remained fourth in the H1 2025 ranking, indicating that its position was unchanged despite the higher disbursement.

The state’s disbursement was supported by N169.29 billion in derivation revenue, N207.73 billion in net statutory disbursement, and N57.13 billion in net VAT disbursement.

The derivation component remains a major differentiator for Akwa Ibom, given its status as one of Nigeria’s major oil-producing states.

• Net Statutory Disbursement: N207.73 billion
• Non-oil revenue augmentation: N3.79 billion
• Net VAT Disbursement: N57.13 billion
• Total Gross Amount: N278.60 billion

3. Rivers State — N295.99 billion

Rivers State ranked third place, receiving N295.99 billion in H1 2026, compared with N264.90 billion in H1 2025.

The state therefore recorded an increase of N31.09 billion or 11.74% year-on-year.

Rivers ranked second in H1 2025 but slipped to third in H1 2026 as Lagos moved ahead.

Its disbursement was supported by N117.33 billion in 13% derivation, reflecting its oil-producing status, while the state also recorded a sizeable N145.49 billion VAT disbursement, second only to Lagos among the states reviewed.

The relatively large statutory and VAT components, alongside derivation revenue, gave Rivers one of the strongest overall FAAC positions nationwide.

• Net Statutory Disbursement: N144.63 billion
• Non-oil revenue augmentation: N4.07 billion
• Net VAT Disbursement: N145.49 billion
• Total Gross Amount: N318.86 billion

2. Delta State — N331.43 billion

Delta State ranked second in H1 2026, receiving N331.43 billion, compared with N299.96 billion in H1 2025. Its disbursement increased by N31.47 billion, representing 10.49% year-on-year.

Despite dropping from first to second position, Delta remained one of the biggest beneficiaries of the federation account due largely to its status as a major oil-producing state.

The state earned N229.71 billion from the 13% derivation fund, the largest derivation amount among the 10 states.

Delta also recorded N262.54 billion in net statutory disbursement, N63.40 billion in net VAT disbursement, N510.42 million from EMTL and N3.83 billion in augmentation from non-oil revenue.

The combination of derivation and statutory revenue explains much of Delta’s continued dominance in the FAAC ranking.

• Net Statutory Disbursement: N262.54 billion
• Non-oil revenue augmentation: N3.83 billion
• Net VAT Disbursement: N63.39 billion
• Total Gross Amount: N345.85 billion

1. Lagos State — N365.78 billion

Lagos topped the ranking of Nigerian states by net disbursement from the Federation Account in the first half of 2026, receiving N365.78 billion, up from N236.92 billion in H1 2025.

This represents an increase of N128.86 billion or 54.39% year-on-year, the largest absolute increase among the 10 leading states.

Lagos alone received 16.96% of total net disbursements to the 36 states in H1 2026.

The performance also marks a significant improvement in Lagos’ position. The state ranked third in H1 2025, meaning it moved up two places to claim the top position in H1 2026.

Lagos’ disbursement was heavily supported by its massive N344.06 billion VAT contribution and N10.91 billion in net statutory revenue pool.

Lagos’ large VAT disbursement reflects the state’s deep concentration of formal businesses, commercial activity, and consumer spending. This pattern is consistent with previous monthly FAAC data, which have repeatedly placed Lagos among the biggest beneficiaries of the VAT pool.

Nairametrics reported that Lagos received N99.98 billion in net FAAC disbursement in February 2026, which is the highest net disbursement the state received in the year.

• Net Statutory Disbursement: N10.91 billion
• EMTL: N3.31 billion
• Non-oil revenue augmentation: N5.05 billion
• Net VAT Disbursement: N344.06 billion
• Total Gross Amount: N476.59 billion

What you should know

The Federation Account Disbursement Committee (FAAC) distributes revenues from statutory sources, VAT, Electronic Money Transfer Levy (EMTL), and other federally collected revenues among the federal, state, and local governments. Oil-producing states also benefit from the constitutionally mandated 13% derivation fund tied to mineral revenues.

While oil-producing states continue to benefit significantly from derivation revenues, economically vibrant states with large consumption bases, particularly Lagos, are increasingly leveraging strong VAT inflows to compete with traditional oil revenue leaders.

With total disbursements to states rising by 25.77% year-on-year to N4.54 trillion, the distribution of resources is increasingly being influenced by a mix of oil production, economic activity, and revenue-generating capacity.