Lagos Gets N179bn as Oil-Producing States Share N424bn from FAAC’s N6trn Disbursement

Lagos State has received N179 billion while Nigeria’s oil-producing states shared N424 billion as the Federation Account Allocation Committee (FAAC) disbursed a record N6 trillion to the three tiers of government in the third quarter of 2025.

Data released by the Nigerian Extractive Industries Transparency Initiative (NEITI) showed that the N6 trillion shared between September and November 2025 represents the highest quarterly FAAC allocation in Nigeria’s history, reflecting improved revenue inflows from petroleum taxes, Value Added Tax (VAT), and other statutory sources. According to the breakdown, the Federal Government received about N2.19 trillion, state governments N1.97 trillion, while local government councils got N1.45 trillion. The allocation also included 13 per cent derivation revenue, which significantly boosted earnings of oil-producing states. Lagos State emerged as the highest-earning state, receiving N179.3 billion within the period, largely due to its strong VAT performance and population-based allocation indices. Kano and Rivers followed, with N79.2 billion and N78.8 billion respectively. The nine oil-producing states, benefiting from derivation funds, jointly received N424 billion, with Delta State accounting for the largest share among them at over N180 billion. Other beneficiaries include Rivers, Akwa Ibom, Bayelsa, and Ondo states. NEITI attributed the record disbursement to higher non-oil revenues, improved tax collection, and exchange-rate adjustments, noting that statutory revenues accounted for over 60 per cent of the total amount shared, while VAT contributed about 34 per cent. However, the agency warned of potential risks to future allocations, citing a slight decline in crude oil production and volatility in global oil prices, which could affect government revenues if not addressed. Reacting to the development, stakeholders urged state governments to channel the increased inflows towards infrastructure, healthcare, education, and social services, stressing the need for fiscal discipline and transparency to ensure citizens feel the impact of the record revenues. The historic FAAC disbursement has renewed discussions on economic diversification and prudent public finance management, as Nigeria seeks to reduce its dependence on oil revenues amid global energy transitions.