Lagos State received the highest Federation Account Allocation among Nigeria’s 36 states between January and May 2026, collecting about ₦362.86 billion in gross allocation, according to a compiled breakdown of state-level FAAC distributions.
After deductions, the state’s net allocation stood at approximately ₦320.09 billion, placing Lagos firmly ahead of the other states during the five-month period.
Delta State ranked second with ₦327.49 billion gross and ₦275.09 billion net, while Rivers came third with ₦270.61 billion gross and ₦267.59 billion net.
Bayelsa followed with ₦244.85 billion gross and ₦221.84 billion net, while Akwa Ibom completed the top five with ₦241.45 billion gross and ₦218.25 billion net.
Together, Lagos, Delta, Rivers, Bayelsa and Akwa Ibom received approximately ₦1.45 trillion in gross allocations during the five months, representing roughly one-third of the approximately ₦4.21 trillion attributed to the 36 states in the compiled figures.
The ranking has drawn attention as state finances, revenue sharing and Nigeria’s dependence on Federation Account allocations increasingly feature in political and economic discussions ahead of the 2027 general elections.
The full ranking shows that Kano was sixth with ₦133.35 billion gross and ₦126.34 billion net, followed by Oyo with ₦131.08 billion gross and ₦116.13 billion net.
Ondo ranked eighth with ₦101.46 billion gross and ₦96.11 billion net, while Abia came ninth with ₦100.26 billion gross and ₦86.05 billion net. Kaduna completed the top 10 with ₦99.17 billion gross and ₦79.85 billion net.
Imo ranked 11th with ₦97.34 billion gross and ₦89.61 billion net, followed by Benue with ₦97.12 billion gross and ₦86.15 billion net.
Edo received ₦96.74 billion gross and ₦84.03 billion net, while Borno recorded ₦95.25 billion gross and ₦90.04 billion net.
Jigawa ranked 15th with ₦95.22 billion gross and ₦84.82 billion net, followed by Katsina with ₦94.94 billion gross and ₦78.94 billion net.
Anambra received ₦92.76 billion gross and ₦88.13 billion net, while Sokoto recorded ₦88.39 billion gross and ₦83.85 billion net.
Niger ranked 19th with ₦87.96 billion gross and ₦81.21 billion net, followed by Plateau with ₦87.38 billion gross and ₦76.32 billion net.
Kebbi received ₦86.29 billion gross and ₦82.62 billion net, while Zamfara recorded ₦85.39 billion gross and ₦79.24 billion net.
Taraba ranked 23rd with ₦84.32 billion gross and ₦79.46 billion net, followed by Kogi with ₦83.99 billion gross and ₦80.94 billion net.
Adamawa received ₦82.82 billion gross and ₦81.16 billion net. Enugu and Yobe both recorded ₦81.89 billion gross, with net allocations of ₦78.34 billion and ₦77.18 billion respectively.
Bauchi ranked 28th with ₦81.22 billion gross and ₦77.57 billion net, followed by Nasarawa with ₦79.13 billion gross and ₦70.61 billion net.
Kwara received ₦77.28 billion gross and ₦72.17 billion net, while Osun ranked 31st with ₦76.53 billion gross and ₦70.77 billion net.
Gombe recorded ₦75.85 billion gross and ₦70.05 billion net, followed by Ebonyi with ₦75.30 billion gross and ₦70.43 billion net.
Ogun ranked 34th with ₦74.98 billion gross and ₦64.71 billion net. Cross River came 35th with ₦72.06 billion gross and ₦57.54 billion net, while Ekiti ranked 36th with ₦70.30 billion gross and ₦63.85 billion net.
The figures mean Lagos’ gross allocation was more than five times the amount attributed to Ekiti during the period. The top 10 states collectively accounted for about 48 per cent of the compiled state-level pool, while the bottom 10 accounted for approximately 18 per cent.
At the national level, the figures indicate that about ₦10.45 trillion was distributed through FAAC among the Federal Government, states and local governments during the first five months of 2026.
The Federal Government received approximately ₦3.72 trillion, while the 36 states received about ₦3.55 trillion and the 774 local governments received approximately ₦2.51 trillion. Oil-producing states also received about ₦673.18 billion through the 13 per cent derivation mechanism.
When derivation payments are added to the states’ main allocation, the total state-level pool rises to approximately ₦4.22 trillion, broadly corresponding with the gross state figures in the compiled table.
Monthly distributions fluctuated during the period, rising from approximately ₦1.97 trillion in January to about ₦2.30 trillion in May, following a decline in February. Gross federation revenue during the five-month period was estimated at about ₦13.76 trillion.
Lagos’ position at the top is closely associated with its enormous economic base and its contribution to Value Added Tax. First-quarter 2026 figures cited in the compilation showed the state receiving about ₦200.21 billion in VAT-related allocation, representing a significant increase from the corresponding period in 2025.
The state’s large commercial, manufacturing, services and consumer markets make it one of Nigeria’s major sources of VAT revenue.
The four oil-producing states in the top five — Delta, Rivers, Bayelsa and Akwa Ibom — benefit from the constitutional 13 per cent derivation principle, which provides additional revenue to states from mineral resources extracted within their territories.
Changes to Nigeria’s tax framework have also increased attention on VAT distribution. Under the revised arrangement referenced in the figures, the states’ share of VAT increased from 50 per cent to 55 per cent, while the Federal Government’s share fell from 15 per cent to 10 per cent.
However, the FAAC ranking does not represent the total revenue available to each state government. Gross allocation is reduced by deductions for debts and other obligations, while states also generate revenue independently through internally generated revenue.
This means a state’s position on the FAAC table should not be interpreted as a direct measure of its overall financial strength or the amount ultimately available for public spending.
The figures also do not measure how efficiently individual state governments use their allocations or the quality of public services delivered with the funds.
What the ranking does reveal is the continuing importance of federally distributed revenue to Nigeria’s state governments. While economically active states such as Lagos benefit heavily from VAT and oil-producing states receive additional derivation revenue, many other states remain substantially dependent on FAAC to finance salaries, infrastructure, healthcare, education and other public services.
With political activity expected to intensify ahead of the 2027 elections, the distribution of federation revenue is likely to remain a major issue in debates over Nigeria’s tax system, fiscal federalism, state revenue generation and the financial sustainability of the country’s 36 states.
Shola Akinyele
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