State governments in Nigeria received significantly higher disbursements from the Federation Account in the first half of 2026. This increase reflects stronger distributable revenues from statutory revenue, Value Added Tax (VAT), derivation revenue, Electronic Money Transfer Levy (EMTL), and other streams.

Data from the Federation Account Disbursement Committee shows that the top 10 states received a combined net FAAC disbursement of N2.16 trillion in H1 2026. This represents a 23.97% or N416.83 billion increase compared to the N1.74 trillion recorded in the same period of 2025.

Total net FAAC disbursements to all 36 states grew from N3.61 trillion in H1 2025 to N4.54 trillion in H1 2026, a 25.77% rise. The top 10 states accounted for 47.47% of this total, meaning nearly N48 out of every N100 distributed went to just 10 states.

Lagos State secured the top spot with N365.78 billion, driven by its massive VAT contribution and economic scale, despite receiving no derivation proceeds. The top 10 states accounted for 92.66% of all derivation revenue, 53.25% of net statutory disbursements, 44.02% of net VAT disbursements, 41.04% of EMTL distributions, and 46.49% of total gross disbursements.

Oil-producing states like Delta, Akwa Ibom, Bayelsa, Rivers, and Ondo collectively received more than N707.32 billion in derivation revenue. Meanwhile, non-oil states like Kano and Oyo secured high rankings due to strong VAT receipts and commercial activity.

How the Top Five States Performed

Delta State ranked second with N331.43 billion, down from first place in H1 2025. The state earned N229.71 billion from the 13% derivation fund, alongside N262.54 billion in net statutory disbursement, N63.40 billion in net VAT, N510.42 million from EMTL, and N3.83 billion in non-oil revenue augmentation.

Rivers State slipped to third place with N295.99 billion, compared to N264.90 billion in H1 2025. Its allocation included N117.33 billion in derivation, N144.63 billion in net statutory disbursement, N4.07 billion in non-oil revenue augmentation, and N145.49 billion in VAT.

Akwa Ibom retained fourth place with N270.27 billion, supported by N169.29 billion in derivation, N207.73 billion in net statutory disbursement, N3.79 billion in non-oil revenue augmentation, and N57.13 billion in net VAT.

Bayelsa State held fifth place with N266.72 billion, driven by N169.26 billion in derivation, N203.91 billion in net statutory disbursement, N3.34 billion in non-oil revenue augmentation, and N58.13 billion in net VAT.

Performance of the Remaining Top Ten States

Kano State stayed in sixth place with N152.57 billion, supported by a N79.42 billion VAT share, N63.49 billion in net statutory disbursement, and N5.98 billion in non-oil revenue augmentation.

Oyo State ranked seventh with N139.09 billion, representing a 45.99% increase from N95.28 billion in H1 2025. This made it the second-fastest-growing state in the top 10, driven by a N97.09 billion net VAT disbursement, N34.92 billion in net statutory disbursement, and N4.23 billion in non-oil revenue augmentation.

Ondo State rose to eighth place with N113.04 billion, benefiting from N21.73 billion in derivation, N57.12 billion in net statutory disbursement, N3.51 billion in non-oil revenue augmentation, and N50.58 billion in net VAT.

Jigawa State moved from 13th to ninth place with N111.61 billion, driven by a N55.89 billion VAT share, N49.01 billion in net statutory disbursement, and N4.22 billion in non-oil revenue augmentation.

Borno State entered the top 10 at tenth place with N109.65 billion, supported by N48.69 billion in net statutory disbursement, N53.57 billion in VAT, and N4.69 billion in non-oil revenue augmentation.