The NEITI Quarterly Review of Federation Account Allocation Committee (FAAC) disbursements revealed a 55.6% year-on-year increase compared to Q3 2024, reflecting a doubling of allocations over two years. The federal government received ₦2.19 trillion, states got ₦1.97 trillion, and local governments shared ₦1.45 trillion.
Statutory revenues dominated the shared funds at 62%, followed by Value Added Tax (VAT) at 34%. The Electronic Money Transfer Levy (EMTL) and non-oil excess revenue augmentations contributed 2% each. States also benefited from an extra ₦100 billion in non-oil revenue adjustments.
Lagos State led with ₦179.3 billion (₦59.76 billion monthly), followed by Kano (₦79.2 billion) and Rivers (₦78.8 billion). Nasarawa received the lowest at ₦42.5 billion, creating a ₦136.8 billion gap between the highest and lowest allocations.
Oil-producing states received an additional ₦424 billion as 13% derivation revenue, reshaping rankings. Delta State topped this category with ₦180.68 billion, trailed by Akwa Ibom, Bayelsa, and Rivers.
Debt deductions from states fell by 6.5% to ₦225.89 billion, with an average debt service ratio of 9.4%. Ogun State had the highest ratio (26.8%), followed by Lagos (26.5%) and Cross River.
Early Q4 2025 data suggests potential revenue declines due to lower oil prices (average production dropped to 1.59 million barrels/day from 1.64 million in Q3) and exchange rate fluctuations. Solid minerals derivation revenue remained negligible, with no distributions since August 2024.
NEITI Executive Secretary, Musa Sarkin Adar, praised improved remittances and reduced debt burdens but warned of fiscal risks from volatile oil markets and optimistic budget assumptions.
