Lagos State has emerged as the biggest recipient of federation account revenue in Nigeria’s first half of 2026, with its receipts rising by more than half in one year and pushing traditional oil-revenue heavyweights down the rankings.
The commercial hub collected N365.78bn in net FAAC revenue between January and June 2026, compared with N236.92bn in the corresponding period of 2025.
The N128.86bn increase, equivalent to 54.39 per cent year-on-year growth, was enough to lift Lagos from third position in H1 2025 to the top of the table. Its rise was almost entirely associated with VAT, highlighting the growing fiscal importance of economic activity and consumption in Nigeria’s revenue-sharing system.
Lagos received N344.06bn in net VAT allocations, far exceeding its N10.91bn statutory revenue allocation. It also received N3.31bn from the electronic money transfer levy and N5.05bn in non-oil revenue augmentation. Its total gross allocation stood at N476.59bn. The increase in Lagos’ receipts coincided with a substantial rise in the amount shared among state governments.
Nigeria’s 36 states received N4.54tn in net FAAC revenue during H1 2026, compared with N3.61tn in H1 2025. That represents an increase of N930bn, or 25.77 per cent.
The 10 biggest recipients accounted for N2.16tn, compared with N1.74tn in the previous year.
Although their combined receipts increased by N416.83bn, their share of the total fell slightly to 47.47 per cent from 48.16 per cent. The figures indicate that revenue growth was not confined to the biggest beneficiaries, with other states also recording stronger inflows.
Delta State, which was the largest beneficiary in H1 2025, slipped into second place despite receiving more money than it did a year earlier. The state collected N331.43bn, against N299.96bn in H1 2025. Its 10.49 per cent increase was dwarfed by Lagos’ 54.39 per cent growth. Delta’s position remained heavily supported by oil-related revenue. The state received N229.71bn in derivation revenue, the largest derivation allocation among the top 10.
Its other receipts included N262.54bn in statutory revenue, N63.39bn in VAT, N510.42m from EMTL and N3.83bn in non-oil revenue augmentation.
Rivers also surrendered one position, falling from second to third. The state’s net allocation increased from N264.90bn to N295.99bn, representing 11.74 per cent growth. Rivers received N117.33bn in derivation revenue, while VAT contributed N145.49bn and statutory revenue N144.63bn.
Despite Lagos’ breakthrough, oil-producing states continued to dominate the derivation component of FAAC.
Delta, Akwa Ibom, Bayelsa, Rivers and Ondo collectively received more than N707.32bn in derivation revenue during H1. Akwa Ibom ranked fourth overall with N270.27bn, up from N230.99bn in H1 2025. Its receipts included N169.29bn in derivation, N207.73bn in statutory revenue and N57.13bn in VAT.
Bayelsa followed in fifth place with N266.72bn, compared with N229.56bn a year earlier. Derivation accounted for N169.26bn of its receipts.
Ondo took eighth place after its allocation climbed to N113.04bn, representing a 28.29 per cent increase from N88.11bn.
The ranking also demonstrates the ability of large commercial states to generate significant FAAC receipts without relying on derivation revenue.
Kano retained sixth position with N152.57bn, up 27.09 per cent from N120.04bn. Its allocation included N79.42bn in VAT, N63.49bn in statutory revenue and N5.98bn in non-oil revenue augmentation.
Oyo remained seventh but recorded a much stronger increase. The state’s receipts jumped from N95.28bn to N139.09bn, representing 45.99 per cent growth. VAT was responsible for much of the increase, with Oyo receiving N97.09bn from the tax pool.
Jigawa recorded one of the biggest ranking improvements, moving from 13th place to ninth. Its allocation increased from N85.62bn to N111.61bn, a 30.36 per cent rise. VAT contributed N55.89bn. Borno completed the top 10 after moving up from 11th place.