Market News

The Federation Account Allocation Committee, FAAC, disbursed a total of N4.587 trillion to Nigeria’s 36 states between January and August 2025, reflecting the continued dominance of oil-producing states in federal revenue allocation and highlighting the widening financial disparity among subnational governments.

An analysis of the distribution for the eight-month period shows that Delta State received the highest allocation with N423.85 billion, followed closely by Rivers State with N388.76 billion, while Akwa Ibom ranked third with N348.62 billion. Bayelsa State received N306.88 billion, finishing as the fourth highest recipient, while Lagos State, the commercial nerve centre of Nigeria, emerged fifth with N289.31 billion.

In the northern region, Kano State led with N195.12 billion, placing sixth nationally, while Edo and Ondo States ranked seventh and eighth, receiving N176.63 billion and N171.85 billion respectively. Kaduna, Oyo, Katsina and Borno completed the top twelve allocation beneficiaries.

At the middle and lower segments of the allocation chart, states such as Plateau (N129.83 billion), Anambra (N128.81 billion), Kwara (N126.27 billion), Gombe (N123.74 billion) and Abia (N122.78 billion) featured, while Enugu, Kebbi, Yobe, Osun and Ekiti followed closely within the lower band.

The least-funded state within the eight-month period was Ogun, which received N110.35 billion, although still above the N100 billion mark, underscoring a generally robust federal disbursement cycle despite ongoing economic pressures.

Meanwhile, the Federal Capital Territory Administration (FCTA) received N121.85 billion, placing it competitively within the same bracket as states like Enugu, Kebbi and Abia.

With a national total of N4.587 trillion shared within eight months, analysts say the allocation pattern strongly reflects the interplay between derivation benefits, population indices, revenue capacity, and national fiscal policy. The trend is expected to shape state-level budgeting, debt management, infrastructure rollout, social spending and performance accountability in the coming months as stakeholders intensify calls for transparency, diversification and fiscal discipline across all tiers of government.