Nigeria's federation account keeps growing. The states collecting the most of it keep staying the same, and the structural concentration, though slightly eased, remains striking.

An analysis of FAAC disbursements to the 36 states shows that total allocations rose to approximately ₦2.49 trillion between January and March 2026, compared with about ₦1.98 trillion during the corresponding period of 2025. Despite the higher revenues, just 10 states received ₦998.65 billion, representing 40.1% of total allocations to states, down from 42.5% in Q1 2025, suggesting that growth in distributable revenues was spread more broadly across the federation during the quarter.

A breakdown of the January to March 2026 FAAC schedules also points to a significant structural shift in Nigeria's fiscal architecture. States shared more than ₦1.28 trillion from VAT during the quarter, far exceeding the approximately ₦811.97 billion distributed through statutory allocation, indicating that consumption taxes and electronic transactions are becoming increasingly important drivers of state revenues, reducing dependence on traditional oil-based statutory allocations.

Top 10 State Breakdown:

  • Lagos led all states with ₦200.21 billion, up 61.8% from ₦123.72 billion in Q1 2025, driven almost entirely by VAT receipts of approximately ₦193.50 billion. Notably, Lagos recorded a negative statutory allocation of ₦2.50 billion in February, meaning nearly all of its FAAC income came from consumption-related revenues.
  • Delta followed with ₦143.42 billion, supported largely by statutory revenues of ₦108.12 billion and VAT of ₦33.79 billion.
  • Rivers came third at ₦123.96 billion, down 8.4% year-on-year, making it one of only two states to record a decline.
  • Bayelsa received ₦114.47 billion, with the statutory allocation of ₦79.44 billion the dominant source.
  • Akwa Ibom received ₦109.76 billion, virtually unchanged from a year earlier, with statutory allocation at ₦77.89 billion.
  • Kano ranked sixth with ₦75.03 billion, up 25.8%, as VAT of ₦45.25 billion exceeded its statutory allocation of ₦27.06 billion.
  • Oyo was the quarter's standout performer outside the south, rising 48% to ₦68.98 billion on VAT receipts of ₦52.81 billion.
  • Jigawa received ₦55.75 billion, up 30.9%, with VAT again the largest component at ₦32.47 billion.
  • Ondo received ₦53.50 billion, up 24.9%, reflecting an increasingly balanced revenue structure for an oil-producing state.
  • Katsina completed the top 10 with ₦52.58 billion, a 20.3% increase, with VAT of ₦33.43 billion exceeding the statutory allocation of ₦17.06 billion.

The two exceptions to the nationwide growth trend were Rivers and Ekiti. Ekiti recorded the steepest decline among all states, with allocations dropping to ₦17.12 billion from ₦28.29 billion in Q1 2025, a 39.5% fall, largely attributable to a negative statutory allocation of ₦16.19 billion in January, followed by another negative statutory adjustment of ₦1.68 billion in February, indicating substantial reconciliation deductions during the period.

Overall, 34 of Nigeria's 36 states recorded higher FAAC allocations than in Q1 2025. Although the share of the top 10 states declined from 42.5% to 40.1%, the data points to a deeper transformation in Nigeria's fiscal architecture, with consumption-driven revenues increasingly shaping how federal resources are distributed across the federation.

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