Nigeria’s Federation Account Allocation Committee (FAAC) disbursed a total net allocation of N703.26 billion to states in January 2026. This represents a 7.18% increase in revenue distribution compared to December 2025.

The gross distributable revenue for December 2025 was N2.59 trillion. From this, N546.14 billion was allocated to the Federal Government and N511.17 billion to Local Government Councils, making the states the largest recipients.

This data comes from the Office of the Accountant-General of the Federation, as reported by the National Bureau of Statistics.

The latest allocation shows sustained revenue growth driven by improved statutory revenues, VAT inflows, and electronic transaction levies. A significant portion of these funds is concentrated among the top-performing states.

Deductions from the gross statutory allocation include external debt servicing, contractual obligations, and other charges. Net allocations are augmented by the Electronic Money Transfer Levy (EMTL), net share of ecology, and net VAT. Some oil-producing states also receive 13% derivation revenue.

The net allocations rose by 32.06% year-on-year from N532.34 billion in January 2025. They also increased by 7.18% month-on-month from N656.12 billion in December 2025, indicating continued fiscal momentum.

Top States by Net FAAC Allocation

The data reveals a concentration pattern in revenue distribution. The top 10 states received N314.78 billion, which is 44.76% of the total net allocation for January 2026. This highlights a widening fiscal gap, with a few states receiving almost half of the total disbursements.

Lagos State recorded the highest net allocation at N55.83 billion, accounting for 7.94% of the total. Jigawa State recorded the highest year-on-year percentage change, with its allocation increasing by 54.43% from N12.68 billion in January 2025 to N19.58 billion in January 2026.

Conversely, Ekiti State recorded a negative net allocation of N6.69 billion in January 2026, attributed to significant deductions from its gross statutory revenue.

The figures reflect both structural advantages for oil-producing states and rising contributions from consumption-driven economies.

January 2026 FAAC Top 10 States

10. Borno State – N19.06 billion

Borno State rounds out the top 10 with a net allocation of N19.06 billion. Its growth was driven by increased federal allocations and VAT receipts. In January 2026, the state saw a 46.14% year-on-year increase from N13.04 billion in January 2025 and an 11.56% increase from N17.09 billion in December 2025.

Borno's allocation includes: Net Statutory Allocation – N8.12 billion, EMTL – N456.65 million, Net VAT Allocation – N10.25 billion, and a Total Gross Allocation of N19.37 billion. Ongoing economic recovery efforts and reconstruction activities have supported these increased fiscal inflows.

9. Katsina State – N19.19 billion

8. Jigawa State – N19.58 billion

7. Oyo State – N21.17 billion

6. Kano State – N26.59 billion

5. Rivers State – N35.08 billion

4. Bayelsa State – N35.24 billion

3. Akwa Ibom State – N35.89 billion

2. Delta State – N47.15 billion

1. Lagos State – N55.83 billion