By Joshua Tosin Ogunsakin 
The 2025 ranking of the top 10 states by net Federation Account Allocation Committee (FAAC) receipts underscores a familiar fiscal pattern. Oil-producing states and leading commercial hubs dominate the table, buoyed by multiple shared revenue streams and, for producing states, the added advantage of the 13 per cent derivation fund.
In 2025, state allocations were shaped by key revenue components, including net statutory distribution, net Value Added Tax (VAT), the Electronic Money Transfer Levy (EMTL), and the 13 per cent derivation for oil-producing states. Taken together, these inflows favoured states with stronger production bases and higher levels of economic activity.
Below are the top 10 states with the highest FAAC allocation in 2025:
1. Delta State — ₦649.67bn
Delta led the 2025 FAAC table with ₦649.67 billion in net allocation. Its dominance was driven largely by oil receipts, particularly the 13 per cent derivation fund. Combined with statutory allocation and VAT inflows, the oil advantage cemented Delta’s position at the top.
2. Rivers State — ₦526.30bn
Rivers ranked second with ₦526.30 billion, reflecting a similar structural edge. As a major oil-producing state with a vibrant commercial base, Rivers benefited from derivation revenue alongside strong VAT performance generated by high transaction volumes.
3. Lagos State — ₦514.56bn
Lagos emerged as the highest-ranking non-oil state, posting ₦514.56 billion. Nigeria’s commercial nerve centre leveraged its vast consumption market and electronic payment ecosystem to record robust VAT and Electronic Money Transfer Levy (EMTL) inflows.
4. Akwa Ibom State — ₦494.23bn
Akwa Ibom secured ₦494.23 billion, reinforcing its status among the top tier. Oil production and derivation earnings, backed by statutory and VAT components, sustained the state’s strong FAAC standing.
5. Bayelsa State — ₦488.08bn
Bayelsa received ₦488.08 billion, underscoring the weight of derivation revenue in the FAAC formula. Despite a relatively smaller population and market size, oil-linked inflows lifted the state above several larger counterparts.
6. Kano State — ₦270.86bn
Kano led the northern non-oil states with ₦270.86 billion. Its large population and commercial scale supported solid VAT receipts, strengthening its position among the top allocations.
7. Oyo State — ₦213.75bn
Oyo recorded ₦213.75 billion, reflecting the impact of population size, trade and consumer activity. Though without derivation benefits, the state’s economic base bolstered its share of statutory and VAT distributions.
8. Anambra State — ₦199.88bn
Anambra posted ₦199.88 billion, driven by sustained private-sector activity and transaction flows. While lacking oil derivation revenue, its commercial strength kept it competitive in the FAAC rankings.
9. Borno State — ₦198.75bn
Borno received ₦198.75 billion, highlighting the broader factors embedded in the allocation formula. Beyond oil output and commerce, fiscal considerations and statutory criteria shaped its final share.
10. Ondo State — ₦198.42bn
Ondo closed the top 10 with ₦198.42 billion. As an oil-producing state, derivation revenue enhanced its allocation, enabling it to compete favourably despite having a smaller consumer market than some peers.