State allocations rose 12.2% in three months, with oil-producing states driving the increase while Lagos recorded the only decline among the 36 states……
Nigeria’s 36 states received a combined N2.39 trillion from the Federation Account between April and June 2026, marking a 12.2 per cent increase from the N2.13 trillion distributed in the first quarter.
The N259.41 billion rise in allocations was accompanied by a notable shift in the ranking of the biggest beneficiaries, with Delta State moving ahead of Lagos to take the top position.
An analysis of Federation Account Allocation Committee distributions for the second quarter shows that several oil-producing states recorded substantial increases, while Lagos saw its allocation fall after an unusually strong first-quarter performance.
Delta received N188.01 billion during the quarter, compared with N143.42 billion in Q1. Rivers followed with N172.03 billion, up from N123.96 billion.
Lagos, which topped the Q1 table with N200.21 billion, dropped to third place after its allocation fell by N34.64 billion to N165.57 billion.
Delta, Rivers lead the Q2 gains
Delta’s Q2 allocation increased by N44.59 billion, representing a 31.1 per cent rise from the previous quarter.
The state received N53.77 billion in April, followed by N67.81 billion in May and N66.44 billion in June.
Rivers recorded an even larger increase in cash terms. Its allocation grew by N48.07 billion, or 38.8 per cent, between the two quarters.
The state received N46.64 billion in April, N55.07 billion in May and N70.32 billion in June. The June payment was the largest monthly allocation recorded by any state during the quarter.
Akwa Ibom recorded the strongest percentage growth among the leading oil-producing states, with its allocation climbing from N109.76 billion to N160.51 billion, a 46.2 per cent increase.
Bayelsa also recorded significant growth, moving from N114.47 billion in Q1 to N152.25 billion in Q2, representing a 33 per cent increase.
Combined, Delta, Rivers, Akwa Ibom and Bayelsa received about N181.19 billion more in Q2 than they did in the first quarter.
Why Lagos slipped from first to third
Lagos was the only state among the 36 to record a decline in total FAAC receipts between the two quarters.
The state’s allocation dropped from N200.21 billion in Q1 to N165.57 billion in Q2, a reduction of N34.64 billion, equivalent to 17.3 per cent.
The decline followed an exceptionally strong first quarter in which VAT accounted for the overwhelming share of Lagos’ allocation.
The state received about N193.50 billion from VAT in Q1, including N101.34 billion in February. Its first-quarter receipts were also boosted by EMTL, ecology funds and a February non-oil revenue augmentation.
In Q2, however, Lagos’ net VAT allocation stood at N150.56 billion. That was about N42.94 billion, or 22.2 per cent, lower than its Q1 VAT receipts.
The change was enough to push Lagos from the top of the overall FAAC table to third place, even though it remained the largest recipient of net VAT among the states.
Four oil-producing states dominate top five
The second-quarter ranking was heavily dominated by oil-producing states.
Delta led with N188.01 billion, followed by Rivers with N172.03 billion, Lagos with N165.57 billion, Akwa Ibom with N160.51 billion and Bayelsa with N152.25 billion.
The combined allocation to these five states reached N838.37 billion, accounting for roughly 35 per cent of the total amount distributed to the 36 states during the quarter.
That represented an increase from the N691.82 billion received collectively by the same five states in Q1, when they accounted for about 32.4 per cent of total state allocations.
The figures therefore show that the increase in overall state revenues was accompanied by greater concentration among the biggest recipients.
VAT tells a different story
The distribution of VAT revenue presents a different picture from the overall FAAC ranking.
Lagos remained the leading state in net VAT receipts during Q2, with N150.56 billion.
Rivers followed with N75.81 billion, while Oyo ranked third with N44.29 billion. Kano received N34.17 billion and Delta N29.61 billion.
This means the state receiving the largest overall FAAC allocation was not necessarily the largest beneficiary of VAT.
Delta, for example, topped the overall table but ranked fifth in net VAT receipts. Lagos, meanwhile, ranked third in total FAAC but remained number one in VAT.
Oyo provides another example. Its total Q2 allocation of N70.12 billion placed it seventh among the states, but its N44.29 billion VAT receipt put it third in the VAT ranking.
Kano remains northern leader
Kano retained its position as the largest recipient among northern states, although its quarter-on-quarter growth was modest.
The state received N77.53 billion in Q2, compared with N75.03 billion in Q1. The N2.50 billion increase represented a 3.3 per cent rise.
Oyo also recorded only a marginal increase, with its allocation moving from N68.98 billion to N70.12 billion, representing growth of 1.7 per cent.
Their performance contrasted sharply with the double-digit increases recorded by several leading oil-producing states.
Ekiti posts 129% increase
Ekiti recorded the biggest percentage increase among the 36 states, although its sharp rise came from a particularly low Q1 base.
The state’s allocation jumped from N17.12 billion in Q1 to N39.24 billion in Q2, representing an increase of N22.12 billion, or 129.2 per cent.
Its Q1 receipts had been affected by negative statutory allocations of N16.19 billion in January and N1.68 billion in February, according to the supplied figures.
The Q2 increase therefore represented a substantial rebound from the deductions and adjustments that weighed on its first-quarter receipts.
Despite the recovery, Ekiti remained near the bottom of the Q2 table, ahead of only Cross River.
Most states record higher receipts
The increase in state allocations was not limited to the major oil-producing states.
Imo’s allocation rose by 14.1 per cent to N57.38 billion, while Taraba increased by 13.1 per cent and Kaduna by 12 per cent.
Ogun recorded an 18.1 per cent increase, moving from N36.13 billion in Q1 to N42.67 billion in Q2.
Abia and Ondo recorded increases of 11.2 per cent and 11.3 per cent respectively, while Ebonyi and Borno rose by 9.5 per cent and 9.3 per cent.
Some states, however, recorded only marginal changes.
Jigawa increased from N55.75 billion to N55.86 billion, while Enugu moved from N45.67 billion to N45.86 billion.
Adamawa recorded a 1 per cent increase, while Edo and Oyo each grew by about 1.7 per cent.
What drove the Q2 reshuffle?
The second-quarter figures point to the importance of oil-related revenues, VAT and other components of the Federation Account in determining how much each state receives.
The sharp increases recorded by Delta, Rivers, Akwa Ibom and Bayelsa helped drive the overall N259.41 billion rise in state allocations.
At the same time, the decline in Lagos illustrates how changes in VAT and other revenue components can significantly alter the quarterly ranking.
The distribution also reflects different revenue strengths among the states. Oil-producing states benefited from statutory and derivation-related revenues, while states such as Lagos and Oyo continued to record substantial VAT receipts because of their large commercial and consumption bases.
The Q2 figures also incorporated the N200 billion April augmentation from non-oil revenue, which provided an additional boost to state receipts at the start of the quarter.
Overall, the latest distribution marks a clear change from Q1: Lagos lost the top spot, Delta emerged as the largest recipient, and the leading oil-producing states captured a larger share of the money distributed to Nigeria’s 36 states.
