Delta overtakes Lagos as Nigeria’s biggest FAAC beneficiary in Q2

Nigeria’s 36 states received a total of N2.39 trillion from the Federation Account in the second quarter of 2026, representing an increase of N259.41 billion, or 12.2 per cent, compared with the N2.13 trillion received in the first quarter.

The figures are based on an analysis of Federation Account Allocation Committee (FAAC) disbursements to the states between April and June 2026.

Delta State emerged as the largest recipient in the second quarter, replacing Lagos, which had ranked first in the first quarter.

Delta received N188.01 billion in Q2, up from N143.42 billion in Q1. Rivers followed with N172.03 billion, compared with N123.96 billion in the first quarter.

Lagos dropped to third position after its allocation fell from N200.21 billion in Q1 to N165.57 billion in Q2. This represents a decline of N34.64 billion, or 17.3 per cent.

Delta, Rivers lead increase

Delta’s allocation increased by N44.59 billion, or 31.1 per cent, between the two quarters.

The state received N53.77 billion in April, N67.81 billion in May and N66.44 billion in June.

Rivers recorded an even bigger increase in cash terms, rising by N48.07 billion, or 38.8 per cent, from N123.96 billion in Q1 to N172.03 billion in Q2.

Its monthly allocation increased from N46.64 billion in April to N55.07 billion in May and N70.32 billion in June.

Akwa Ibom recorded the highest percentage increase among the five largest recipients. Its allocation rose from N109.76 billion in Q1 to N160.51 billion in Q2, representing a 46.2 per cent increase.

Bayelsa also recorded a strong increase, moving from N114.47 billion to N152.25 billion, a rise of 33 per cent.

Together, Delta, Rivers, Akwa Ibom and Bayelsa received about N181.19 billion more in Q2 than they did in Q1.

Lagos allocation falls

Lagos recorded the biggest decline among the leading states.

The state received N200.21 billion in Q1 but its Q2 allocation dropped to N165.57 billion.

The decline was largely linked to lower VAT receipts. Lagos received about N193.50 billion from VAT in Q1, including N101.34 billion in February.

In Q2, its net VAT allocation fell to N150.56 billion, a decline of about N42.94 billion, or 22.2 per cent.

Despite the decline, Lagos remained the largest recipient of net VAT among the states.

VAT continues to influence state revenue

The Q2 figures also show the growing importance of VAT in state revenues.

Lagos received the highest net VAT allocation at N150.56 billion. Rivers followed with N75.81 billion, while Oyo received N44.29 billion.

Kano received N34.17 billion, while Delta received N29.61 billion.

The VAT ranking was different from the overall FAAC ranking. Delta, for example, ranked first in total FAAC receipts but fifth in VAT receipts.

Oyo also recorded a similar difference. The state received N70.12 billion in total FAAC, placing it seventh among the states, but its N44.29 billion VAT receipt ranked third.

Kano and Oyo record small increases

Kano remained the largest recipient in northern Nigeria during the quarter.

The state received N77.53 billion in Q2, compared with N75.03 billion in Q1. This represents an increase of N2.50 billion, or 3.3 per cent.

Oyo’s allocation increased slightly from N68.98 billion to N70.12 billion, representing a 1.7 per cent rise.

Ekiti records biggest percentage increase

Ekiti recorded the largest percentage increase between Q1 and Q2.

Its 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.

The increase followed a weak first-quarter performance, when the state recorded negative statutory allocations of N16.19 billion in January and N1.68 billion in February, according to the figures supplied.

Despite the sharp recovery, Ekiti remained the second-lowest recipient in Q2, ahead of only Cross River.

Most states receive more

Most states recorded higher allocations in Q2.

Imo increased from N50.31 billion to N57.38 billion, while Taraba rose by 13.1 per cent and Kaduna increased by 12 per cent.

Ogun’s allocation rose by 18.1 per cent, from N36.13 billion to N42.67 billion.

Abia increased by 11.2 per cent, Ondo by 11.3 per cent, Ebonyi by 9.5 per cent and Borno by 9.3 per cent.

Jigawa recorded only a slight increase, from N55.75 billion to N55.86 billion. Enugu also rose marginally from N45.67 billion to N45.86 billion.

Adamawa increased by about one per cent, while Edo and Oyo both recorded increases of about 1.7 per cent.

Lagos only state to record decline

Based on the Q1 and Q2 figures, Lagos was the only state that recorded a decline in total FAAC receipts.

The N34.64 billion reduction in Lagos’ allocation came despite increases recorded by most other states.

The change also meant that the five largest recipients in Q2 were Delta, Rivers, Lagos, Akwa Ibom and Bayelsa.

These five states received a combined N838.37 billion in Q2, compared with N691.82 billion in Q1.

Their combined share of total state allocations therefore increased from about 32.4 per cent in Q1 to about 35 per cent in Q2.

What the figures show

The Q2 figures show a major change in the distribution of FAAC revenue among the states.

The N259.41 billion increase in total state allocations was driven largely by higher receipts recorded by oil-producing states, particularly Delta, Rivers, Akwa Ibom and Bayelsa.

Lagos’ decline, meanwhile, shows how changes in VAT and other revenue sources can significantly affect quarterly allocations.

The figures also highlight the difference between economic activity and dependence on federal revenue. Oil-producing states continued to receive large FAAC allocations because of statutory and derivation-related revenues, while states such as Lagos, Oyo and Kano maintained strong VAT receipts because of their large commercial and consumption bases.

The Q2 figures also included the N200 billion April augmentation from non-oil revenue, which provided additional support to state allocations during the first month of the quarter.